SMJK Chung Hwa, Kelantan (M3Trial)

Section A [45 marks]

Answer all questions in this section.


1. Activity Preceding activity Duration (days)
A - 2
B - 4
C A 8
D A 4
E A, B 3
F A, B, C 5
G D, E 4

(a) Draw an AON network for the above project. [3]
(b) Determine the minimum completion time of the project. [2]
(c) Determine the critical path of the project. [1]


2. Activity Preceding activity Duration (days)
P - 5
Q - 8
R Q 6
S P, Q 4
T P 3
U R 4
V T 6
W S, U 10
X V, W 8

(a) Draw an AOA network for the above project. [3]
(b) Determine the minimum completion time of the project. [1]
(c) Determine the non-critical activities and their floats. [2]
(d) Determine which activities can be delayed for 10 days without affecting the minimum
completion time. Give a reason for your answer. [2]


3. A hardware shop stocks hammers with the following inventory record,
Working days = 250 days per year
Annual demand = 10000 units
Holding cost = RM2 per unit per year
Ordering cost = RM18 per order
Lead time = 4 days
Using the EOQ model, find
(a) the economic order quantity [1]
(b) the average inventory [1]
(c) the annual ordering cost [1]
(d) the annual holding cost [1]
(e) the total annual inventory cost [2]
(f) the number of order per year [1]
(g) the time (number of days) between consecutive order [1]
(h) the reorder point [1]

4. Nicky and Micky want to buy a house that costs RM240000. They can afford to put a 20% down
payment towards the cost of the house and financing the remaining on a 30-year mortgage at 7.5% per year
with monthly payment.
(a) Find the monthly payment.
(b) How much Micky and Nicky pay in finance charges for the life of the loan.
(c) After 20 years, what equity does he have in his house?

5. Vektum Bank pays interest at the rate of 4% annual compounded quarterly. How much money will
Meng Han have in the bank at the end of 5 years
(a) if he deposits RM250 at the end of each quarter?
(b) if he deposits RM250 at the beginning of each quarter.

6. A dishwasher was purchased by Ulala Restaurant on July 27 for RM2600. The estimate useful life of
the dishwasher is 16 years and trade-in value is RM100.
(a) What is the amount of depreciation to the nearest cent at the end of third year?
(b) A convey with an estimated useful life of 20 years and a final book value
of RM700 was purchased for RM7000. Using the reducing balance depreciation method, find the book value
at the end of the third year.


Section B [15 marks]
Answer onequestion in this section.

7. Activity Preceding activity Duration (days) Number of workers required
P - 2 3
Q - 4 4
R P, Q 5 8
S P 4 3
T R, S 3 2
U T 3 6
V P 2 1
W U, V 2 4
(a) Draw an AOA network for the above project [5]
(b) Draw a Gnatt chart for the project [5]
(c) Draw a Resource Histogram for the workers required if all activities start as early as possible.
What is the minimum number of workers required at any given time in order for the project to
complete in minimum time. [3]
(d) If rescheduling is only allowed for activity V which is delayed by 3 days, determine the new
minimum number of workers, required at any given time to complete the project. [2]

8. Pelangi Condominium association wants to establish a sinking fund to accumulate RM250000 in 3
years to repair the roofs. The fund earns 9% interest compounded monthly.
(a) If there 200 units in the condominium, how much should each unit owner be assessed each
month as a fair contribution into the fund? (Assume that all unit are of equal size and hence have equal
assessments)
(b) How much does the sinking fund earn?
(c) Verify the result by completing the following sinking fund schedule.

End of
period
Payment
made
Accumulated
Interest RM)
Cumulative
Deposit (RM)
Cumulative Deposit
(RM)
1
12
24
36


Marking scheme:
1. (a)

[3]

(b) Minimum completion time of the project = 15 days [2]
(c) A C F [1]

2. (a)

[3]
(b) Minimum completion time of the project = 36 days [1]
(c) Non critical activities Total float
P 9
S 6
T 14
V 14 [2]
(d) Activities T and V can be delayed because total floats are 14 which exceed 10. [2]

3. n = 250, D = 10000, C
h
= RM2, C
0
= RM18, l = 4
(a)
h
C
DC
Q
0
2
= =
2
) 18 )( 10000 ( 2

= 424 units [1]
(b) average inventory =
2
Q

=
2
424

= 212 units [1]
(c) Annual C
0
=
0
C
Q
D
|
|
.
|

\
|
= 18
424
10000
|
.
|

\
|

= RM424.53 [1]
(d) Annual C
h
=
h
C
Q
|
.
|

\
|
2
= 2
2
424
|
.
|

\
|

= RM424 [1]
(e) Total annual inventory cost = 424.53 + 424 = RM848.53 [2]
(f) Number of order per year, N =
|
|
.
|

\
|
Q
D
=
|
.
|

\
|
424
10000
= 24 orders [1]
(g) T =
N
n
=
24
250

= 10.42 days [1]
(h) reorder point, r = dl = l
n
D
|
.
|

\
|
= 4
250
10000
|
.
|

\
|

= 160 orders [1]

4. (a) RM240000 x 80% = RM192000
Monthly payment =
|
|
|
|
|
.
|

\
|
|
.
|

\
|
+
12 30
12
075 . 0
1 1
12
075 . 0
192000 = RM1342.49
(b) Total finance charges = (1342.49 x 360) 192000 = RM291296.40
(c) After paying 20 years, left 10 years
Present value =
|
|
|
|
|
.
|

\
|
|
.
|

\
|
+

12
075 . 0
12
075 . 0
1 1
49 . 1342
120
= RM113097.60
The amount paid on the loan = borrowed P.value
= RM192000 RM113097.60
= RM78902.40
Equity = d.payment + loan paid = 48000 + 78902.40 = RM126902.40

5. r = 4%, RM250 for 5 years
(a) At the end of 5 years =
|
|
|
|
|
.
|

\
|

|
.
|

\
|
+
4
04 . 0
1
4
04 . 0
1
250
20
= RM5504.75
(b) 5504.75 x 4% x
12
3
= 55.05
5504.75 + 55.05 = RM5559.80

6. (a) Amount of depreciation =
16
100 2600

= RM156.25
First year: 156.25 x
12
5
= 65.10
Second and third year: (156.25 x 2) + 65.10 = RM377.60
(b) n = 20 years, book value = 700, purchased = 7000, rate = ?
r = 1
t
B
B
1
0
|
|
.
|

\
|
= 1
20
1
7000
700
|
.
|

\
|
= 0.1087 ~ 10.9%
Book value at the end of 3
rd
year = B
0
(1 r)
t
= 7000(1 0.109)
3

= RM4951.44




Section B

7. (a) Delayed by 3 days = 5

[3]

Q R T V W, 17 days

(b)


(c) Minimum number of workers = 11
(d) 12 workers

8. RM250000 for 3 years, Fund earns 9% compounded monthly
(a) 200 unit - ? each unit owner
R =
|
|
.
|

\
|
+ 1 ) 1 (
n
i
i
A =
|
|
|
|
.
|

\
|
+

1 )
12
09 . 0
1 (
12
09 . 0
250000
3 12
= RM6074.93
(b) 250000 (6074.93 x 36) = RM31302.52
(c)
End of
period
Payment
made
Accumulated
Interest RM)
Cumulative
Deposit (RM)
Cumulative
Deposit (RM)
1 6074.93 0 6074.93 6074.93
12 6074.93 3083.55 6074.93 x 12 75982.71
24 6074.93 13294.81 6074.93 x 24 159093.13
36 6074.93 31302.39 6074.93 x 36 249999.87
A =
( )
|
|
.
|

\
|
+
075 . 0
1 075 . 0 1
93 . 6074
12