Notesale: Turn your study into money

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Table of Figures
Figure 1- Gantt Chart for scope of work of Mechanical Engineering
...
2
Figure 3- Figure 3 - Gantt Chart for scope of work of Electrical Engineering
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3
Figure 5- Gantt chart for “Master Plan” of the project
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7

i

ii

Introduction of the Project
The MAX Light Rail Project is planned to install a 21km light rail network within Perth to
provide high capacity service for the suburbs of the city
...
Time management is discussed through the AOA diagrams and Gantt charts
...
The solvency,
profitability and liquidity of the project was determined through calculations which are
performed in the latter part of the report
...

Method of analysis include Gantt charts, AOA diagrams, and cash flow diagrams etc
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Task 1 – Gantt Chart for Mechanical, IT and Electrical WBS

Figure 1- Gantt Chart for scope of work of Mechanical Engineering

1

Figure 2- Gantt Chart for scope of work of Communication/IT

Figure 3- Figure 3 - Gantt Chart for scope of work of Electrical Engineering

Task 2 – AOA diagram for Engineering scope of works

13

14
0E,5

NE,6

12

ME,14
7

LE,5

11

KE,
9
10

JE,6

9

2

GE,3
2

1
AE,2

4
BE,1

DE,5

5

FE,4
EE,9

6

IE,4
HE,7

8

CE,2
CE, dummy
3

Figure 4-AOA for EE scope of work

Possible path
ABDEHIJKLNO
ABDGMNO
ABDEE(dum)MNO
ABDEFKLNO
ACC(dum)DEFKLNO
ACC(dum)DEHIJKLNO
ACC(dum)DGMNO
ACC(dum)DEE(dum)MNO

Duration(weeks)
59
36
42
46
47
60
37
43

Slacks(weeks)
1
24
18
14
13
Critical path
23
17

a)
Critical path
ACC(dum)DEHIJKLNO

60 weeks

b)
The shortest path
ABDGMNO

36 weeks

c)
The relocation of all existing infrastructure couldn’t be delayed as a result of, it’s in the critical
path
...

3

e)
The termination of the primary incoming 66kV overhead feeders could be delayed by 14 weeks
...
The critical path with the highest duration was found
to be in the Electrical scope of work which is 60 weeks, thus the Activity “J” takes a maximum
of 60 weeks for completion
...

𝑇𝑖𝑚𝑒 𝑓𝑜𝑟 𝑝𝑟𝑜𝑗𝑒𝑐𝑡 𝑐𝑜𝑚𝑝𝑙𝑒𝑡𝑖𝑜𝑛 (𝐼𝑛 𝑦𝑒𝑎𝑟𝑠) =

208
= 4 𝑦𝑒𝑎𝑟𝑠
52

Deriving the total revenue equation
As the revenue gained by advertising per day is $4000
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The following table shows the loan drawdown profile of the initially borrowed $100m
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The Revenue generated by on-board advertising is calculated as follows;
Revenue from on − board advertising = $4000 per day × 𝑁𝑜 𝑜𝑓 𝑑𝑎𝑦𝑠 𝑟𝑒𝑚𝑎𝑖𝑛𝑖𝑛𝑔

Revenue from on − board advertising (RA′) = $4000 per day × 365𝑑𝑎𝑦𝑠
Revenue from on − board advertising (RA′) = $1,460,000
The Revenue generated by ticket sales is calculated as follows;
Revenue from tickets (RT) = 350,000pa × ($3𝑁 × 60% + $2𝑁 × 26% + $𝑁 × 14%)
Revenue from tickets (RT′) = $861,000N
The expected Operation and Maintenance cost is as follows;
Operation and maintance cost(O/M′) = $150, 000

6

Figure 6: Cash flow diagram

Task 6 – Calculating Ticket(N) Price
Assuming that the breakeven would happen after 50 years
...
5%)
Total Cost of the Project in Present Value

PV =
Expences for year 1 in PV =

FV
(1+i)n

$18m
(1+0
...
025)2

Expences for year 2 in PV = $22,843,546

Expences for year 3 in PV =

$36m
(1+0
...
025)4

Expences for year 4 in PV = $14,495,210

Expences for year 5 in PV =

$6m
(1+0
...
025)46 − 1
O/T Expences from year 5 − 50 = $150k
0
...
025)46
O/T Expences from year 5 − 50 in PV =

$4,073,125
(1 + 0
...
025)46 − 1
Revenue from year 5 − 50 = ($1
...
025(1 + 0
...
025)4
8

Revenue from year 5 − 50 in PV = $35,916,493 + $21,180,891 N

Total Revenue of the Project = $35,916,493 + $21,180,891 N

Therefore, as the breakeven happens after 50 years,
Total Revenue of the Project = Total Expenditure of the Project
$35,916,493 + $21,180,891 N = $97,322,487
Ticket Price(N) = $2
...


Task 7- Years to breakeven with the Alternative Scenario

Total cost of the project
Present Value =

Future Value
(1+i)n

The price of a one way ticket $N = $3
The interest rate = 3%
...
16
(1 + 0
...
82
(1 + 0
...
74
(1 + 0
...
77
(1 + 0
...
71
(1 + 0
...
16 + 22,622,301
...
74 + 14,215,792
...
71
= $ 92,434,576

Total revenue per year (N = $3) = 1460000 + (861000 𝑥 3) = $ 4043000
Then total revenue for until break even =

Total maintenance cost =

150000
1
...
034

𝑥

(1+0
...
03(1+0
...
03)n −1

𝑛

= 3592153
...
03)n −1
0
...
03) 𝑛

(1+0
...
03(1+0
...
06 𝑥 0
...
03) 𝑛

Number of Years to Breakeven
At the Break Even Quantity of output where Total revenue equals Total cost (zero profit)

Total Revenue (present value, profit for n numbers) = Total expenditure
(1+0
...
03)n −1

3592153
...
03(1+0
...
06 𝑥 0
...
03) 𝑛 + 92434576
n = 54
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The statement of
breakeven within 50 years is breached since time constraint is not achieved with the project
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50

10

The interest rate = i %
1st year Expences in Present Value =

18 x 106
(1 + i)1

2nd year Expences in Present Value =

24 x106
(1 + i)2

36 x 106
3rd year Expences in Present Value =
(1 + i)3
16 x 106
4th year Expences in Present Value =
(1 + i)4
6 x 106
5th year Expences in Present Value =
(1 + i)5

Total Expenditure (for five years)
18 × 106
24 × 106
36 × 106
16 × 106
6 × 106
=
+
+
+
+
(1 + i)1
(1 + i)2
(1 + i)3
(1 + i)4
(1 + i)5

Total revenue per year (N = $ 2
...
50) = $ 3612500
Total revenue for 50 years =

3612500
(1+𝑖)4

(1+i)46 −1

𝑥

i(1+i)46

Total maintenance cost (after 5 years) =

150000
(1+𝑖)4

𝑥

(1+i)46 −1
i(1+i)46

Then, at break even
3612500
(1+𝑖)4

𝑥

(1+i)46 −1
i(1+i)46

150000

= [ (1+𝑖)4 𝑥

(1+i)46 −1
i(1+i)46

]+[

18 𝑥 106
(1+𝑖)1

+

24 𝑥 106
(1+𝑖)2

+

36 𝑥 106
(1+𝑖)3

+

16 𝑥 106
(1+𝑖)4

+

6 𝑥 106
(1+𝑖)5

]

i = 2
...
038359%

11

Task 9- Contractor company selection
AAA

Liquidity
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑅𝑎𝑡𝑖𝑜
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
=
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙
= 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
− 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑄𝑢𝑖𝑐𝑘 𝑅𝑎𝑡𝑖𝑜
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 − 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠
=
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

2014
2538
=
3113
= 0
...
94176

4911
= 1
...
98872
= 3505 − 3545
= −40

= 2538 − 3113
= −575

= 4911 − 4000
= 911

= 3202 − 3400
= −198

2538 − 127
3113
= 0
...
193

3202 − 131
3400
= 0
...
94866
=

The current ratio is a commonly used liquidity ratio that measures a company’s ability to pay its
current liabilities with its current asserts
...
8153$
in 2014
...
22 current ratio, which appears to be able to
easily service its short-term debt obligations
...

Tracking the current ratio helps us to assess the health of the constructor
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The constructor BBB doesn’t show a current ratio in between 1-2, generally that
kind of a low current ratio could suggest problems with inventory management, ineffective or lax
standards for collecting receivables, or an excessive cash burn late
...
It may indicate both constructors is growing into its capacity
...
The
constructor AAA show a positive working capital in 2015, positive working capital generally
indicates that the constructor AAA is able to pay off its short-term liabilities almost immediately
which the constructor BBB cannot
...

The constructor BBB shows a huge decreasing quick ratio generally suggest that BBB
constructor os over-leveraged, struggling in maintain or grow sales
...
193 quick ratio which is greater than 1 is sufficiently able to meet
shirt-term liabilities
...


AAA

Solvency
Debt Ratio =

Total Debt
Total Assets

𝑇𝑖𝑚𝑒 − 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 − 𝐸𝑎𝑟𝑛𝑒𝑑 𝑅𝑎𝑡𝑖𝑜
𝐸𝐵𝐼𝑇
=
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒
𝐸𝑞𝑢𝑖𝑡𝑦 𝑅𝑎𝑡𝑖𝑜 =

𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

2014
4102
=
6671
= 0
...
5
2569
=
6671
=0
...
5627
2819
=
75
= 37
...
4359

2014
4400
=
7335
= 0
...
33
45
2935
=
7335
= 0
...
62176
1935
=
39
= 49
...
37824

The debt ratio quantifies how leveraged the constructor is
...
This low debt ratio may indicate that
the constructors has an opportunity to use leverages a means of responsibility growing business
that it is not taking advantage of
...
Higher quick ratios are a good sign for investors and creditors
because creditors want to know they will be paid back on time
...
Using the results above AAA constructor sows a huge incensement which indicates
that this can experience significant swings in their times interest earn
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AAA

Profitability
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =

𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑅𝑒𝑣𝑒𝑛𝑢𝑒

2014
819
=
30107
= 0
...
07077

2014
1435
=
29845
= 4
...
006%

13

𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛
𝐺𝑟𝑜𝑠𝑠 𝑀𝑎𝑟𝑔𝑖𝑛
=
𝑅𝑒𝑣𝑒𝑛𝑢𝑒

𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡𝑠 =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 =

𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦

=

4316
30601
= 0
...
1757

=

=

819
6671
= 0
...
2683

=

1435
7335
= 19
...
3188

=

2447
3976
= 0
...
893%

=

=

5307
29845
= 17
...
794%
=

1039
7712
= 13
...
619%

Net profit margin is the percentage of revenue remaining after all operating expenses
...
The constructor AAA show a increasing in net profit margin which is the one
converting into profits
...
The company shows a incensement in gross profit margin which is a
good state
...

In conclusion, the company AAA show an increment in both return assets and return equity,
which means the amount of profit that the company AAA made was high
...

All things considered, the constructor AAA is the best recommendation
...

As a result he positively influence us in changing ours behaviour to be success as a group
...
Inspiration is most often one
used by our leader in a downward fashion to influence high performance in a team
...
This appeals to emotions, a primary driver of motivation
...
Consultation works because he always remembered to
provides input, as a result all team members become more committed to the initiative
...

In addition we gained other team members commitment to complete certain tasks and in support,
everyone able to offer help others directly of provide resources
...

As result of these prodigious tactics we had an immediate task objective, such as influencing the
team person to carry out new task, provide assistance on the project, and provide necessary
resources which helps us to finish the task on date
...

If I was the leader I could also use the same tactics that our team leader use for the reason that
they positively affect us to reach to the success of our project in gently way
...
Furthermore by
calculating profit margins and ration able to select the pre-eminent constructor for the project

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