This is a solution of Unit 4 Business Decision Making Assignment Help in which we discuss Developing business

Task 4 (A)

Data given:

DescriptionActivityPreceding activityDuration in weeks
Replace windows in loungesA5
RewiringB4
RE-plaster walls of loungeCA2
Fir lights in loungesDB1
Decorate bedroomsEB5
Install plumingFB5
Decorate loungeGC,D4
Decorate kitchenHF3
DecorateIF2

Unit 4 Business Decision Making Assignment Help

ii. What is the critical path Project Duration?

Critical path = {Start à B à F à H à End}

= 4 weeks + 5 weeks + 3 weeks = 12 weeks(Kisilowski & Soros, 2014)

iii. Prepare a Gantt Chart and state the benefits of using it as a Project Management Tool. (AC 4.2)

Data given:

ActivityDescriptionDuration (Weeks)
AReplace windows in lounges5
BRewiring4
CRe-plaster walls of lounges2
DFit lights in lounges1
EDecorate bedrooms5
FInstall plumbing5
GDecorate lounges4
HDecorate Kitchens3
IDecorate2

Benefits of Gantt chart:

  • Gantt chart represents the activities in an effective manner or it renders the graphical representation of action plan.
  • Time management is implemented effectively as it shows the duration of every activity in effective manner.
  • It renders the facility of allocating the resources in adequate manner and also helps in managing them in adequate manner.
  • With the use of it the coordination gets improved in effective manner.
  • Different activities get managed in effective manner(Ogunfowora, et. al., 2013).

Read more : Contract and Negligence Assignment part 2

Task 4 (B)

I. Calculate the NPV and IRR of each project.

Net present value:

It is the technique rendered by capital budgeting in order to forecast the future profitability rendered by the project and helps in selecting the adequate options to earn profits. With the use of the discounting factors present value is calculated and helps in forecasting the profits for the projects(Ogunfowora, et. al., 2013).

Internal Rate of Return:

It is also an effective technique rendered by the capital budgeting and it get utilised in order to calculate the break-even point of the projects. In order to calculate the real profits NPV get utilised with the inflation rate(Ogunfowora, et. al., 2013).

Both the factor shows profits when they render positive balances and loss in case of negative balances. Higher the positive value higher the profits and vice-versa.

Project A:

YearsCash InflowCumulativeP.V. Factor@ 10%P.V.P.V.Factor @ 20%P.V.
0-250,000250,0001-250,0001-250,000
1100,000150,0000.90990,9000.83383,300
2115,00035,0000.82694,9900.69479,810
3125,000-90,0000.75193,8750.57972,375
4130,000-220,0000.68388,7900.48262,660
5140,000-360,0000.62186,9400.40256,280
205,495104,425

(Ogunfowora, et. al., 2013)

NPV = 455,495 -250,000 = 205,495

NPV = 205,495

IRR = 10% + {(455,495 – 250,000) / (455,495 – 354,425)} * [20% – 10%]

= 10% + {(205,495 / 91,070)} * 10%

IRR = 32.56%(Forquer Gupta, 2012)

Project B

YearsCash InflowCumulativeP.V. Factor@ 10%Present ValueP.V. Factor @ 20%Present Value
0-250,000250,0001-250,0001-250,000
190,000160,0000.90981,8100.83374,970
2125,00035,0000.826103,2500.69486,750
3135,000-100,0000.751101,3850.57978,165
4110,000-210,0000.68375,1300.48253,020
585,000-295,0000.62152,7850.40234,170
164,36077,075

NPV = 414,360 – 250,000

NPV = 164,360

IRR = 10% + {[414,360 – 250,000] / [414,360 – 327,075]} * (20% – 10%)

= 10% + {164,360 / 87,285} * 10%

IRR = 28.83%(Forquer Gupta, 2012)

II. Recommend which project you would undertake, if any. Provide reasons for your position.(AC 4.3)

Outcome of both methods are as follows such as:

MethodsProject AProject B
NPV205,495164,360
IRR32.56%28.83%

Decision:

As per the results Project A should be preferred over Project B. The reason behind this Project A attains higher NPV as compare to Project B as Project A rendering profits as 205,495 which are  much higher as compare to Project B as 164,360(Jalal-Karim, 2013).

On the other hand the IRR of project A is much higher as compare to Project B such as Project A attains IRR as 32.56% whereas Project B attains IRR as 28.83%.

Due to higher profits and higher IRR Project A get preferred over the Project B(Jalal-Karim, 2013).

Conclusion

In the end it is concluded that for effective decision making adequate there is adequate need of research and analysis of information system. In order to get the current and accurate information there is effective need of gathering information from the primary sources and utilised it into their decision making. Survey is conducted with the use of questionnaire in order to gather the information from the primary sources. In order to calculate the average there are effective techniques are available such as mean, median and mode. For decision making in order to calculate risk standard deviation is utilised. In order to make easy and effective representation line chart and bar chart is utilised which helps in making easy understanding. In the end for calculating profits for the projects various profit evaluation techniques get utilised such as net present value and internal rate of return.

Cheap Assignment Help provide assignment writing service based on case study requirements in affordable prices and we are providing most flexible online assignment writing help, so book your Assignment with us,  Order Now

Maddox Smith

Hey,
Greetings for the day !
Hope that you’re well !

We want to introduce ourselves as a team of professionals who are into academic writing for the last 10+ years. We can provide assignment assistance in all subjects. Our experts can provide solutions across all the topics right from Management, HR, Marketing, Finance & Accounts, Statistics, IT, childcare, nursing, law, and general writing. We provide plagiarism free work and also send a ‘Turnitin’ report along with completed work. Our services are available at reasonable cost; we entertain amendment requests from clients without any extra charges.

Our Feature Included

Ø Every assignment includes graphical representation like pie chart, bar graph, smart art and all.
Ø Free 0% plagiarism report
Ø Expert team for technical work as well.
Ø On time delivery
Ø Multiple rework facility
Ø Huge team of expert in each subject
Ø Referencing like: Harvard, APA, MLA, Oscola, automatic referencing all are familiar to our experts.

Subject we cover: Math , finance, economics, accounts, civil engineering, mechanical engineering, IT, Computer science, electrical and electronics engineering, history, geography, political science, sociology, physiology, philosophy, biology, microbiology, biotechnology, biotechnology, B-school assignments, project report, psychology, nursing assignments, medical assignments, Tourists and travelling assignments all kinds of dissertation and so on

Best Regards:
Oz Paper Help
WhatsApp:+1 585-666-2225
Email:ozpaperhelp@gmail.com
www.ozpaperhelp.com
www.cheapassignmenthelp.co.uk
www.freeassignmenthelp.com

https://www.ozpaperhelp.com/
1 Step 1
GET INSTANT ASSIGNMENT HELP BY PHD EXPERTS FROM UNITED KINGDOM
keyboard_arrow_leftPrevious
Nextkeyboard_arrow_right