Tuesday, Feb. 3, 2015
Watch:
https:/www.youtube.com/watch?v=wbvfir2x344
Read:
Description of the three activities: Spaghetti tower, Marshmallow Challenge, and Index Card
Tower, as well as an overview of the PM presentation task. All files are posted under

Tuesday, Feb. 3, 2015
Watch:
https:/www.youtube.com/watch?v=wbvfir2x344
WBS exercise, posted as a slide under Lesson 3 slides
Ch. 6 (p. 114) problems 2, 5, 6, 8
Do:
Read:
Description of the three activities: Spaghetti tower, Marshmallow Challenge, and Ind

Tuesday, Jan. 20, 2015
Read:
Course syllabus
Rescue of the Chilean Miners case
Related to the Chilean Miners case: http:/www.cnn.com/2013/07/13/world/americas/chileanmine-rescue/
Project Managers in Practice" case
Lesson objectives:
Main:
Introductions
T

For the midterm
Use the Lesson Guide documents to determine which chapters/sections have been
assigned to be read. You can look at these, especially the examples, to complement the
lecture notes.
Everything we have covered in class is fair game for the mi

Course Topics
CPM
Project crashing
Time value of money
P
F
A
Arithmetic gradient
Geometric gradient
Single payments
Shifted series
PW for alternative/project selection
AW for alternative/project selection
Capitalized cost
Capital recovery
ROR, single proj

1. You are borrowing $100,000 from a bank for four years. Which interest rate would you prefer and
why: 6% compounded semi-annually, or 5.8% compounded monthly? Given your choice of interest
rate, how much will you owe at the end of year 4?
2. If you star

Helpful notes (hopefully) on interest rates
Nominal: 2% per month 6% per quarter 12% per 6 months 24% per year.
o Compounding period is mentioned, but its effect is not considered. Example: 12% per year,
compounded monthly. Unless the word effective is us

Machine A
Initial Cost
Savings
Growth Rate in Savings
Salvage Value
Year 1
-320,000
80,000
Year 2
80,000x(1+0.03)= 82,400
-320,000+80,000=-24,0000
82,400
Year 1
-400,000
150000
Year 2
160000
-250000
140000
3%
Cash Flow
MARR
10%
Present Value
135838.8
Mach