Priyanshu Kumar

Roll no 1311314
Assignment 1
a. With the given activities, duration and costs the project was scheduled. Project Information can
be summed as given below.

Project Duration: 27.5 weeks

Project Cost: $221,500
Critical steps
Evaluate the prestige of each underwriter Select a syndicate of underwriters Negotiate the
spread for each member of the syndicate Prepare the registration statement including the
proposed financing and information about the firm's history, existing business, and plans for the
future Submit the registration statement to the SEC Receive deficiency memorandum from the
SEC Amend the registration statement and resubmit it to the SEC Receive registration
confirmation from the SEC Appoint a transfer agent Issue final prospectus that includes the
final offer price and any amendments to all purchasers offered securities through the mail
b. With the change in some activities done independently the project timeline was analysed
1. Negotiate the commitment of each member of the syndicate; work time changed from 2
weeks to 3 weeks: No change in the project timeline
2. Calculate the issue price; work time changed from 5 weeks to 4 weeks: No change in the
project timeline
3. Amend the registration statement and resubmit it to the SEC; work time changed from 1
week to 2.5 weeks: Project timeline increased to 29 weeks
4. Confirm that the new issue complies with the blue sky laws of each state; work time
changed from 1 week to 4 weeks: Project timeline increased to 28 weeks

Priyanshu Kumar
Roll no 1311314

c. Extra money to be invested in following activities

Assumption: The table in the assignment provide the total cost of doing the activities in a given final
time interval.
Extra cost/week is calculated for each activity for calculating the minimum cost in decreasing the
project timeline.
Activity Activity Name
No
3
2
16
18
15
12
14
9
10
8
17
6

Select a syndicate of underwriters

Evaluate the prestige of each potential
underwriter
Appoint a transfer agent
Phone interested buyers
Appoint a registrar
Amend the registration statement
Confirm the new issue
Distribute the preliminary prospectus
Calculate the issue price
Make presentation to institutional investors
Issue final prospectus
Prepare the registration statement

Initial
Time
(Weeks)
1.5

Final
Time
(Weeks)
0.5

1.5

3.5
4
3
1
1
3
5
6
4.5
5

1.5
1.5
1.5
0.5
0.5
2
3.5
4
2
4

Extra
Extra
Cost
Cost
($)
/Week
3500
3500
6000
8000
11000
7000
3000
3300
7000
19000
35000
59000
45000

4000
4000
4400
4666
6000
6600
7000
12666
17500
23600
45000

Upon careful examination and seeing through the critical path, money should be invested in
activities 3, 2, 16, 15, 12, 17.
In activities 3, 2, 16, 15 and 12 full decline in time is needed while in activity 17 only 0.5 weeks of
decline is needed. Hence
Minimum total cost increase = 3500 + 6000 + 8000 + 7000 + 3000 + 0.5*23600
= $39300
Hence Total Cost = $ 221500 + $39300 = $ 260800
d. In this part money and resources should be invested in activities 3, 2, 16 and 15.
However in activity 2 only 0.5 weeks of decline is needed to maintain 24 weeks of scheduled time.
Hence
Minimum total cost increase = 3500 + 0.5*4000 + 8000 + 7000
= $20000
Hence Total Cost = $ 221500 + $20000 = $241500