PART A Enter the tasks from the table below in MS Project. Note that all task ar

Question

PART A

Enter the tasks from the table below in MS Project. Note that all task are measured in weeks.

Indicate the precedence relationships between the different tasks.

Select the option on the Gantt chart to indicate all tasks that lie on the Critical Path for the completion of the project (Should be highlighted).

Save the MS Project File as YourLastNameProject.

PART B

Use the folowing cash flow information to perform a finaicial analysis to determine if a new Information Systems project should be implemented. The duration of the projected cost and the retuns from the project are distributed over a five-year period. The estimated cost for the project is $245,000 paid in Year 0 with addition maintainence cost of $25500 for each of the following years. An estimated return of $105,000 is expected for each year beyond Year 0. The design, development, and implementation of the System will take the entire first year with a projected discount rate of 7.5%.

Calculate the NPV and the ROI using Microsoft Excel and indicate if the Information System should be implemented.

Create a chart to indicate the Breakeven point for the cash flows. Place the chart on its own Chart Sheet and label the axes appropiately.

Save the Excel file as YourLastNameNPV-ROI.

Explanation / Answer

Solution :

Data for part A is missing .

PART B

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Rate of return = Average profit / Average book value of the investment

Average book value of the investment = $ 397, 500/

Average book value of the investment = $ 49,000

Rate of return = $ 397,500 / $ 245,000

Rate of return = 162.24 %

Year Cash out flows Cash Inflows 0 $245,000 0 1 $25,500 $105,000 2 $25,500 $105,000 3 $25,500 $105,000 4 $25,500 $105,000 5 $25,500 $105,000 Year 0 1 2 3 4 5 cash flows ($245,000) $79,500 $79,500 $79,500 $79,500 $79,500 cost of capital 7.50% NPV $76,647.85

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