Exam Example Exercise 2 solution

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FINANCE AND MANAGEMENT OF INFRASTRUCTURE INVESTMENTS Exam Example 1: 1) PM Exercise (12 Points) The following project is assigned. Identify the critical path. Can be the project concluded before week 15? Considering the possibility to crash the activities as shown in table 2 identify the optimal solution according to a crashing programme. A penalty of 10 000€ is applied in case the project is not concluded before week 13. Activity Immediate Predecessor Duration (Weeks) Duration Reduction (Crashing) Total Crashing Cost (€) A - 4 1 15 000€ B - 7 3 30 000€ C A 2 1 8 000€ D A,B 1 / / E C 5 2 16 000€ F B,D,E 4 1 9 000€ G E,F 2 2 30 000€ The following additional information is provided: Activity Expected Costs (€) Real Costs (€) BCWP criteria (milestones) POC A 18 000€ 20 000€ 20-80 All Milestones completed B 35 000€ 40 000€ 0-100 All Milestones completed C 40 000€ 30 000€ 0-50-100 Second Milestone Completed (50%) D 35 000€ 15 000€ 20-80 First Milestone completed E 20 000€ 5 000€ 20-80 First Milestone completed F 30 000€ - 0-100 G 20 000€ - 20-80 Considering the following budget information compute the project performances. Consider that Time Now = 10 and that BCWS = current BCWP at month 8 (no crashing is considered). Which are the Estimate at completion (EAC) in terms of time and money in case of contingent error? And in case of Structural error? Question 2 (6 Points): Define the main types of pre-completion, post-completion risks and risks in common to the two periods. Discuss some potential mitigants and incentives to address them. Provide some examples. Question 3 (6 Points) Define the concept of PPP, discuss the main reasons to adopt it and the Critical Factors for a successful PPP. Question 4 (6 Points) Discuss the distinctive features of an infrastructural…