Broken Welds Just do paraphrasing. UPLOUD TWO FILES … Running head: BROKEN WELDS 1 Broken Welds Name Institution Date BROKEN WELDS 2 Bro

Broken Welds Just do paraphrasing.

UPLOUD TWO FILES

… Running head: BROKEN WELDS
1
Broken Welds
Name
Institution
Date
BROKEN WELDS
2
Broken Welds
Question: What information does Alison need to determine the probable impact of Kelsey’s
proposed project on the other projects in the department? Should her findings affect her
decision about Kelsey’s project? How?
Kelsey would need to determine the following information:
•
Number of welds to be redone
•
Cost of these welds.
•
Time required to complete Kelsey’s proposed project
•
Monetary and other resources like manpower and raw materials required to complete
Kelsey’s proposed project.
•
How the other projects will be affected if the resources are allocated towards Kelsey’s project
•
The importance of other projects and their priority over each other.
Her findings may or may not affect her decision about Kelsey’s project. If her findings
suggest that it is more economically viable and important to start Kelsey’s proposed project, then
she would make a decision in favor of it. Also, Alison would have to take under consideration
the viewpoints of the chief engineer and other superiors before making a decision about Kelsey’s
project (Meredith et al., 2014).
BROKEN WELDS
3
References
Meredith, J. R., Mantel, S. J., Shafer, S. M., & Sutton, M. M. (2014). Project management in
practice. Wiley
1.
Identify as well as you can the three iron triangle constraints for this project: cost,
time, and scope.
Cost: $11 million;
Time: start after Nov 20X6, finish by July 20X7;
Scope: construction of a project plan, land purchase, purchase of furnishings, materials’
purchase and contracting labor for building construction and connection, and staff training in the
new facility services.
2. Identify the expected benefits of this project for Friendly Medical Center.
•
•
•
•
•
A profit generating program controlled by the management of the Center gaining upto
$1.5 million per year.
Improving the Friendly Medical Centre local image
Gaining more referrals to the therapy programs of the outpatient in the medical Centre;
Increment of census in the outpatient units in the hospital
The community is provided with better care in programs of wellness, preventive and
reimbursable forms.
3. Comment on the strategic initiatives resulting from the Board’s major strategic planning
retreat. Would you consider this a productive retreat?
The retreats outcomes were shallow. The best thing to do would have been coming up with the
two initiatives from a meeting by the board followed by data collection for deciding on the
retreat on the ares that need to be focused on for patient cost effectiveness improvement and
also the delivery of care to them. This also includes exploring new programs in detailed form
and considering the services which tend towards capitalization the staff and the maintaining a
good reputation.
4. What “project selection” procedure was used here? How common do you think this is?
How wise do you think it is?
The CEO used the approach of sacred cow probably not the one which is not common. The idea
does not show any kind of risk analysis being put into consideration although the idea is more
promising. There is also no consideration of any other possible alternatives that are more
profitable.
1. ( 2.5pts) Using the cash flow on Page 15 in your text generate an Excel sheet using your assigned k
values
K (%)
NPV ($)
6
141557
7
119,604
8
99296
9
80494
10
63072
11
46916
12
31,932
13
17997
14
5054
15
-6985
16
-18189
17
-28624
18
-38349
19
-47417
20
-55877
21
-63775
2.
Plot of NPV Versus Interest rate
NPV ($)
160000
120000
80000
40000
0
-40000
-80000
0
6
11
17
2. (2.5pts)Do Exercise 1 on page 28 in the text.
A Four year financial forcast to have a net cash inflow of $20,000, $25,000, $30,000, and
$50,000 in the next four years. It will cost $75,000 to implement the project, payable at the
$20K
$25K
$30K
$50K
22
beginning of the project. If the required rate of return is 20% conduct a discounted cash flow
calculation to determine the NPV.
NPV = -$75K + $20K(P/F, 20%,1) + $25K(P/F, 20%,2) + $30K(P/F, 20,3) + $50K(P/F, 20, 4)
NPV = -$75K + $20K(0.8333) + $25K(0.6944) + $30K(0.5787) +$50K(0.4823)
NPV = -$75K + $ 16.666 + $ 17.36 + $ 17.361 + $ 24.115 = $ 0.496K = $496
In order to answer this question, the student needs to discount the cash flows in years 1
through 4 ($20,000, $25,000, $30,000 and $50,000 respectively) to the present using a
30% discount rate and compare this value with the initial outflow of $75,000. Using the
NPV Excel formula gives the following analysis:
4.(5pts) A company which uses austenitic nickel chromium ions to manufacture resistance
heating wire is considering a new annealing drawing process to reduce cost. If the new
process will cost $1.75 million dollars now, how much must be saved each year to cover the
investment in ten years at an interest rate of 12%?
A = $1.75M(A/P, 12%,10)= $1.75M(0.12((1.12)10)/((1.12)10 -1)
= $1.75M(0.12(3.105)/( 3.10584 -1) = $1.75M(0.37270/2.10584)
= $1.75M(0.176985)= $309723.75
5. (5pts) A construction company invests $55,000 in a new bulldozer. If income from temporary
leasing of the bulldozer is expected to be $11,000 per year, when will it take to recover the
investment at an interest rate of 15% ?
P = A [(1 +i)n -1]/i(1 +i)n
$55,00 = $11,000[1.15)n -1]/ 0.15(1.15)n
(5.0)(0.15) = 1 – 1/1.15n
0.75 = 1 – 1/1.15n
0.25 = 1/1.15n
1.15n = 1/0.25 = 4.0
Nlog 1.15
= log 4.0
N = log4.0/log 1.15 = 9.918 years

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