Task List

Your team has been asked to determine what a one way taxi fare, in terms of $N /km, needs to be set to, in order to be able to break even at the end of the 10 year time frame and also be competitive with a standard land based taxi fare.

To help you to provide a response to this request you are required to present the following in your formal report to the Sky Taxi planning design team who will then submit your document at the board meeting.

Task 1. Draw the Gantt charts pertaining to each of the Work Breakdown Structures for the Mechanical, Communication / IT and Electrical scope of work components as per Tables 5, 6 and 7 respectively. (Note: The Gantt charts can be hand drawn but no free hand drawings are acceptable as this is a formal report. All charts are to be clearly labelled showing total time duration in weeks. ) Each Gantt chart drawn is to fit to the size of an A4 sheet of paper.

Task 2. Draw an AOA diagram for the of the Electrical Engineering scope of works, starting from and including activity “AE” up to and including activity “RE”. Refer to Table 7.

a. Find and state the critical path and determine its duration in weeks.

b. State by how many weeks the installation of the interruptible power supply equipment in the main switch rooms(s) can be delayed by, without affecting the completion time of the overall Electrical Engineering component of the project.

c. State by how many weeks can the upgrade the 66kV substation at Perth airport docking station be delayed by, without affecting the completion time of the overall Electrical Engineering component of the project.

d. State by how many weeks the installation of the lightning and surge protection equipment be delayed by, without affecting the completion time of the overall Electrical Engineering component of the project.

e. Similarly, by how many weeks could the installation of all landing pad lights as per CASA requirements be delayed by, without affecting the overall Electrical component project?

Task 3. On one A4 sheet of paper using the data given in Table 4 of the Appendix and incorporating information attained from question 1, draw the complete Gantt chart of the “Master Plan” for this project. Total duration time is to be given in weeks.

Task  4. Using the now completed Table 4 determine the overall expected project completion time from the initial tender, “Activity A” to the commissioning and handover of the complete project, “Activity K ”. (a) Clearly state how many weeks in total it will take to build and commission the five docking stations. This is a critical number as it will determine when the project can commence earning revenue.

(b) Show the derivation of the total annual revenue equation expected during the 5 th year of operation.

Task 5. Draw on one A4 sheet of paper and clearly label the pre-tax cash flow diagram for the total project showing all relevant contributing cash inflows and outflows.

Task 6. The project is to break even at the end of 10 years (this includes all feasibility and construction times). Determine the value of a one Sky Taxi fare in terms of $N /km, if Sky Taxi can negotiate an interest rate of 2.9%. (Show your working and equations used*). Comment if your calculated figure is competitive when compared with a land based taxi fare.

Task 7. Alternative Scenario: By holding the interest rate of 2.9% and setting the price of a one way ticket to $N/km = $3.00/km, calculate how many years it would take to break even. (Show your working*) Is this in breach of the required time constraint for the project?

Task 8. You are asked to look at a further scenario, where Sky Taxi wants to set the price of a one way fare to $N/km = $3.00/km and also that the project must break even at the end of 20 years. Calculate the required interest rate value to be negotiated in order to achieve this. Give your answer as a %, to an accuracy of nine significant figures. (Show the equations used to calculate this*). Comment on the calculated interest rate.

Task 9. Part of your role is to select the engineering contracting company to carry out the build of the Electrical, Mechanical and Comms IT construction work. The list of accredited tenderers has been narrowed down to two companies. Both companies have provided their respective financial statements for the past two fiscal years. Refer to Appendix 2. Calculate the solvency, liquidity and profitability ratios for each company (for both financial years) and display your calculations. Based on your calculations make your recommendation as to which company would be better placed to undertake this project. In your own words clearly explain your reasoning.

MGMT-3000-Assignment