Mubarak textbook Construction Project Scheduling and Control - 3rd edition(Chapter 11) can be used as reference, but problem not from textbook

PROBLEM 2

2. A project team developed a detailed construction plan that includes activities with uncertain durations, including precedence constraints. The plan was simulated 10 times, and using a significance level (α) of 0.05, the expected project duration was found to be: 365 ± 47 days In other words, the true mean duration could be anywhere between 318 days and 412 days. Moreover, this is ONLY the mean duration. Given any particular outcome, actual duration could be quite different. We would like to calculate the expected duration with only 20 total days of error. Please provide the number of simulation replications (n) required to accomplish this. Use both approximations found in the lecture on number of replications.

ABC Company forms in 2020. Prior to operations, ABC incurred $75,000 of startup costs. ABC began operations in February 2020.

ABC Company is in the construction business and has to make significant capital expenditures to begin operations. ABC purchased the following capital assets during the year:

Construction Equipment - $1,500,000

Furniture for its offices - $50,000

Computer Equipment - $250,000

ABC rents its office space from an unrelated third party. The rent is $20,000 per month.

If ABC elects to expense assets using § 179 and does not elect the additional first-year depreciation deduction, calculate its total § 179 deduction for the year and carryforward, if any. Compute amortization expense as well.

If ABC elects to take advantage of the additional first-year depreciation (bonus depreciation) calculate its total deduction, and carryforward if any, for depreciation and amortization purposes.

I wanted answers with the diagram. Thank you!

1. Ann transferred land worth $300,000, with a tax basis of $100,000, to Brown Corporation, an existing entity, for 100 shares of its stock. Brown Corporation has two other shareholders, Bill and Bob, each of whom holds 100 shares. What are the income tax consequences to Ann with respect to the transfer?

2.In order to induce Yellow Corporation to build a new manufacturing facility in Knoxville, Tennessee, the city donates fair market value of $500,000) and cash of $200,000 to the corporation. Several months after the donation, Yellow Corporation spends $800,000 (which includes the $200,000 received from Knoxville) on the construction of a new plant Indicated on the donated land. What are the income tax consequences to Yellow Corporation with regard to the donation of land and subsequent construction of a new plant?

On December 31, 2016, Jumble Inc. borrowed $1,000,000 at 10% payable annually to finance the construction of a new building. In 2017, the company made the following expenditures related to this building: June 1, $400,000; July 1, $600,000; September 1, $1,200,000; December 1, $600,000. The building was completed in April 2018. Additional information is provided as follows.

1. Other debt outstanding

10-year, 8% bond, dated December 31, 2015, interest payable annually $10,000,000

15-year, 10% note, dated December 31, 2012, interest payable annually $2,500,000

2. Interest revenue earned in 2017 $6,000

Instructions

(a) Determine the amount of interest to be capitalized in 2017 in relation to the construction of the building.

(b) Prepare the journal entry to record the capitalization of interest and the recognition of interest revenue and interest expense, if any, at December 31, 2017.

Produce a report detailing the planning process for an OLE construction activity (min 600 words), using a recent work as the basis for the report. The report should detail the following: • Strategic planning process for engineering possessions

• Planning of engineer’s trains and on track plant

• Ordering and supply of materials

• Manpower requirements

• Road rail machines requirements

• Possession arrangements

• On track plant detailed plans

• Interface with other engineering functions

• Isolation of Traction Supply

• Bill of quantities for activity

• Manufacture, order and delivery of OLE components

• Pre-assembly / delivery of components

• Detailed construction activity

• Work activity Plan (Gantt Chart

) • Progress reporting arrangements

• Risk Assessmen

t • Disposal of waste materials

• Mechanical checks carried out prior to opening to service

• Electrical checks carried out prior to opening to service

• Collation of as built records

• Handover from constructor to maintainer

Job role definition becomes increasingly important as projects grow in size and complexity. One of the tools available to project managers is the RACI chart.

Review the following RACI Chart and address the questions:

Are there clear delegations of authority?

Are there multiple decision points within a single task/process?

Would the team have questions about who does what?

Is the Accountability level unclear?

Sam's Construction had a balance in its allowance for doubtful accounts at the end of 2014 of $44,500. Sam reported credit sales of $5,000,000 in 2014 and wrote off receivables of $43,000 during 2014. At the end of the year, Sam estimates un-collectible accounts receivable based on the year-end aging using the assumptions provided at left.

What should the balance be in Sam's Construction allowance for doubtful accounts as of December 31,2015?

The table below shows the average annual consumption bundle and prices in 2012 and 2013:

(a) What is the percentage change in the price of each good? Calculate the consumer price index (CPI) for 2012 and 2013 using 2012 as the base year. What is the inflation rate in the CPI?

(b) Are all consumers equally affected by the change in the “cost of living” (the CPI)? Explain.

(c) What does the change in quantities in 2013 tell you about whether the CPI might overstate or

understate the effect of price changes on the “cost of living”?

a. Company UX manufactures glassware. Supplier DQ provides raw material to Company UX under the credit terms of 1/15 net 40. i. Determine the cost of giving up the cash discount from Supplier DQ. Your answer should be in percentage and rounded to two decimal places. ii. Bank JW offers short-term financing to Company UX at a premium of 5% above PRIME. If the current PRIME rate is 11% p.a; what is the cost of bank borrowing for Company UX? iii. Given your answers in (i) and (ii), should Company UX take up the cash discount from Supplier DQ? If the invoice amount is $80,000, determine when and how much should Company UX pay.

Virus Stopper Inc., a supplier of computer safeguard systems, uses a cost of capital of 8 percent to evaluate average-risk projects, and it adds or subtracts 1 percentage points to evaluate projects of more or less risk. Currently, two mutually exclusive projects are under consideration. Both have a cost of $ 303 and will last 4 years. Project A, a riskier-than-average project, will produce annual end of year cash flows of $ 101 . Project B, of less than average risk, will produce cash flows of $ 272 at the end of Years 3 and 4 only. To the nearest .01, list the NPV of the higher NPV project. Note, if the NPV is negative, place a - sign in front of your answer. Do not use the $ symbol.