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a) Critical Path: A, B, E and F. Project completed in 11 weeks.
Subtract one mark for each error made. Maximum marks can only be awarded if the candidate explicitly indicates the critical path (either on the diagram or written out).
b) Any two reasons explained in the context of SJC warrants maximum marks. These might include:
• It encourages forward planning at SJC, i.e. managers need to consider the different aspects of the construction project in order to complete it in minimal time
• Since CPA provides a visual stimulus, it is easier for people to interpret the logistics of the plan in order for the construction project to run more smoothly.
• It identifies the shortest time in which the construction project can be completed so that the buyer will have the house completed on time.
• CPA can help SJC to control costs more effectively by identifying when certain activities can start and how long certain tasks should last.
BASRIL PLC (a) (i) Analysis of projects assume they are divisible. Project 2 NPV at 12% = (140800 × 3·605) - 450000 = $57584 Project 2 profitability index = 5
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