CSE422 TUTORIAL 3
COST ESTIMATION AND PROJECT SCHEDULING
 Q1
A contractor has decided to       Model                         A          B
add a truck to his fleet. The      Purchase Cost                 $200,000   $490,000
contractor estimates its annual
                                   Life (hours)                  12,000     24,000
usage will be about 2,000 hours.
His ownership cost factors to      Tire cost (every 2,000        $20,000    $10,000
be: Interest: 5%; Taxes: 2%;       hours)
Insurance: 2%; Storage: 1%;        Major repair (every 6,000     $80,000    $50,000
License: none. Which of the
                                   hours)
following alternatives should
the contractor select? Please      Maintenance cost (per hour)   $18.25     $15.25
round the calculated values to     Salvage Value                 $20,000    $40,000
integers. (8%)
Q2
Given the information in the
following table:
a. Construct the network diagram
(AON).
b. Find each activity’s ES, EF, LS,
and LF.
c. Find critical path and time.
d. Calculate the slack for each
activity.