Interlink Services Ltd. (ISL) are in the process of introducing a new service. The
technical services manager has listed following activities, their predecessors and
associated costs:
Activity Predecessor (Weeks)
Expected
time
Standard
deviation
Cost (Sh.)
A – 8 1.0 41,600
B – 3 0.25 15,600
C A 7 0.69 36,400
D A 5 1.0 26,000
E A 3 0.22 16,000
F C 3 0.11 15,000
G D 4 0.18 20,800

H B,D,E 8 0.85 40,800
I H 3 0.25 14,000
J F,G,I 4 0.11 23,800
Required:
(a) The project network, critical path and expected project duration. (6
marks)
(b) If activity B is delayed by 3 weeks, activity E by 4 weeks and activity F by 2
weeks, by how many weeks will project time be delayed?
(4 marks)
(c) If there are no delays, how many weeks should be targeted to finish the project
with a 98% confidence? (4 marks)
(d) Interlink Service Ltd. has an expected revenue of Sh. 5 million projected if the
project is completed within 30 weeks but if the deadline is not met, the
expected revenue is only Sh. 500,000 with a penalty of Sh. 750,000 being
imposed Compute the expected profit.
(6 marks)