2024 - 01 - CPR22A - Assign 1
2024 - 01 - CPR22A - Assign 1
ASSIGNMENT 2024
DATE: 12 September 2024 TIME:
1 October 2024 (Submission) Before: 16:00
SUBJECT: ENGINEERING PROJECT MANAGEMENT CODE:CPR22A
PROGRAMME: B ENG. TECH
CODE: B_CVLE
ASSESSOR: Mr W Strydom MSc, BEng (Hons)
MODERATOR: Mr AL Badenhorst Pr Tech Eng
INSTRUCTIONS TO CANDIDATES:
1. This project assignment is group or individual work. Each group may consist of max
3 members.
2. A completed and signed ‘Assignment/Project submittal and identification sheet’ must
be included as the third page of your assignment/project.
3. The assignment/project should be submitted as a formal document/technical report,
inclusive of all the required sections, e.g., cover page, title page, submittal sheet, table
of contents, list of tables, list of figures, abbreviations, and reference list. All the
questions must be answered and presented in the correct order.
4. The assignment should be submitted as ONE PDF DOCUMENT with the following
document name:
a. Individual: “Student No_Student Surname_CPR22A_Assign1”.
b. Group: “Student No 1_Student No. 2_Student No. 3_CPR22A_Assign1”
A maximum of 3 attempts for submission via Safe Assign are allowed. You will be able
to view your Safe Assign originality report/plagiarism score, which must be limited to
<20%.
5. Assessment criteria (General): 15%
• Professionalism of project (template layout, format, typed, neatness, and
terminology): 60%.
• References (format, citations and reference list): 40%.
6. Assessment criteria (Knowledge area (KA) linked to GA 7/GAs): 25%
• Problem-identification: 10%.
• Completeness and correctness: 80%.
• Interpretation and discussion: 10%.
7. Assessment criteria (Graduate Attribute(s) 7 linked to KA): 60%
• As per detailed GA Development Rubric: 100%.
Signed: ________________________________________________________
Date: ________________________________________________________
Question 1:
Making use of Numerical Models to select an appropriate Project, and preparation of a
Project Scope Baseline (50 Marks)
You are the Project Manager for a company where the Client owns an existing office block.
The office block accommodates the Client’s personnel, as well as tenants for tree companies
who is renting the office space from the Client.
The Client needs your assistance to make a financial decision to either invest in renovating
the existing office block, or to sell the existing office block and build a larger office block that
can accommodate more tenants. Furthermore the Client requested that you prepare a Scope
Baseline for the best option.
YOUR ASSIGNMENT/TASKS:
Task 1: Provide a proposal to the Client motivating the best of the two Option by making use
of the following Numeric Selection Models, over a period of 5 years, (1) Payback period, (2)
Return on investment (ROI), (3) Net present value (NPV), and Internal rate of return (IRR).
The yearly interest rate is 5%.
Cash Flow
Cash Flow
Years Option 1 Option 2
Year 1 R 400,000 R 600,000
Year 2 R 350,000 R 800,000
Year 3 R 200,000 R 750,000
Year 4 R 150,000 R 900,000
Year 5 R 100,000 R 600,000
a) Calculate the Payback Period for both Options, and motivate the most favourable
Option. [6]
b) Calculate the Return on Investment (ROI) for both Options, and motivate the most
favourable Option. [7]
c) Calculate the Net Present Value (NPV) for both Options, and motivate the most
favourable Option. [7]
d) Calculate the Internal Rate of Return (IRR) for both Options, and motivate the most
favourable Option.
(i) Prepare a table indicating the NPV and interest rate from 1% to 10% to establish
the IRR. [11]
(ii) Prepare a graph by plotting the NPV and interest rate for 1% to 10% to establish
the IRR. [7]
e) Indicate the best option and provide motivation based on the models used. [2]
Task 3: Prepare a Work Breakdown Structure (WBS) for Option 1 and prepare a WBS
Dictionary for one of the Work Packages.
(Maximum 1 typed page). [10]
Task 4: In your own words define a Project Charter, Project Scope Statement, Scope Baseline,
Schedule Baseline, and Cost Baseline.
(Maximum 1 typed page) [10]
Total: [80]