+ tP) /6. The Expected activity duration (tE) equals the Optimistic activity duration (tO) plus four times the Most likely activity duration (tM) plus the Pessimistic activity duration (tP) divided by six (A Guide, 2008). Activities OT MT PT PERT 1 4 6 14 7 2 5 12 16 11.5 3 7 15 23 15 4 13 16 28 17.5 5 17 20 35 22 6 20 32 50 33 7 5 6 13 7 The work is not likely to be finished in 40 days because part two can only be done after part one is done and part seven can only be done after
Words: 874 - Pages: 4
including among others, inventory control, employment scheduling, and personnel assignment. Transportation was one of the earliest application areas of operations research, and important transportation problems, such as the traveling salesman problem, vehicle routing problem, and traffic assignment problem, contributed to fundamental knowledge in operations research. Transportation remains one of the most important and vibrant areas of operations research. The transportation model has some rigid
Words: 2523 - Pages: 11
the one visible to the consumer (i.e., the interest tagged in a loan contract, credit card statement, etc). Nominal interest is composed by the real interest rate plus inflation, among other factors. A simple formula for the nominal interest is: i = r + π Where i is the nominal interest, r is the real interest and π is inflation. This formula attempts to measure the value of the interest in units of stable purchasing power. However, if this statement was true, it would imply at least two misconceptions
Words: 2310 - Pages: 10
same time the retirement withdrawals begin, so the PV of the retirement withdrawals will be the FV of the retirement savings. So, we find the FV of the stock account and the FV of the bond account and add the two FVs. (Monthly installment and so monthly compounding: 30 years time 12 months equal to 360months) Stock account: FVA = Rs.700[{[1 + (.11/12) ]360 – 1} / (.11/12)] = Rs.1,963,163.82 Bond account: FVA = Rs.300[{[1 + (.07/12) ]360 – 1} / (.07/12)] = Rs.365,991.30 So, the total amount saved at
Words: 9031 - Pages: 37
operational forces into numerical estimates of expected financial performance. There are several reasons for projecting future financial performance. First, pro forma statements are very useful when evaluating alternative business strategies. It is one thing to discuss strategy at the conceptual level, but much more valuable to be able to identify the profit and funding effects of alternative strategies. Second, evaluating alternative future events permits explicit measurement of risk. Financial
Words: 5514 - Pages: 23
CALIFORNIA PIZZA KITCHEN Teaching Note Synopsis and Objectives This case examines the question of financial leverage at California Pizza Kitchen (CPK) in July 2007. With a highly profitable business and an aversion to debt, CPK management is considering a debt-financed stock buyback program. The case is intended to provide an introduction to the Modigliani-Miller capital structure irrelevance propositions and the concept of debt tax shields. With the background of a pizza company, the
Words: 2393 - Pages: 10
work-in-process sitting in front of them. The two obvious bottlenecks turn out to be the multi-process automation machine and a heat-treating furnace. But the robotic machine was supposed to have a major production efficiency increase over the original manual processes. Specifically , the old machines' process times were: Machine1 - 2 minutes, Machine2 - 8 minutes, and Machine 3 - 4 minutes, for a total cycle time of 16 minutes. These machines required one machinist per station for a total of 10 machinists
Words: 721 - Pages: 3
annuity is best defined by which one of the following? A. increasing payments paid for a definitive period of time B. increasing payments paid forever C. equal payments paid at regular intervals over a stated time period D. equal payments paid at regular intervals of time on an ongoing basis E. unequal payments that occur at set intervals for a limited period of time 2. Which one of the following accurately defines a perpetuity? A. a limited number of equal payments paid in even time increments
Words: 21964 - Pages: 88
Netflix Case Study Analysis Background Netflix had grown to be the largest online movie rental service provider with subscribers reaching over 53 million in nearly 50 countries with people enjoying more than two billion hours of television shows and movies per month. For only one low monthly price, Netflix customers can watch as much as they want at anytime. Starting as only a DVD by mail service, Netflix has expanded its company to digital streaming at the click of your finger. Giving you
Words: 1504 - Pages: 7
Should we buy a new machine or upgrade the old one? One of the managerial decisions that our local hospital had to make was whether to transition into a digital format with our portable x-ray machines by performing transformation upgrades to both existing analog units or to trade them in and use their value to offset the total price incurred by the purchase of new units. This paper will discuss several factors that may affect the decision making process, along with a preliminary analysis of the problem
Words: 967 - Pages: 4
