Use financial tools and financial benefit on decision making

Assignment Help Operation Management

Reference no: EM132120855

Dubai government has signed an agreement for construction of a 228,000 sq. ft. electronics and specialised waste recycling plant at Dubai Industrial Park by December 2018. The construction will cost 3m AED and ongoing operating costs are estimated to be 500k AED annually. The facility will serve as the region's largest centre of expertise for electronic waste management. The plant will recycle the entire range of end-of-life electrical and electronic equipment ranging from consumer and industrial to commercial and military appliances, such as air conditioners, batteries, IT equipment, household appliances, military avionics and mobile phones. Phase 1 of the plant will comprise state-of-the-art equipment to process 50,000 tonnes of electronic waste annually. Phase 2, which will go live at the end of the second year of operation and cost another 1m AED for construction, will increase capacity to 75,000 tonnes annually. Each tonne generates 50 AED of revenue through resale or reuse. The cost of capital is 10%.

1. Prepare a project plan for an activity and determine the critical path.

2. Use financial tools and financial benefit on decision making.

Reference no: EM132120855

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