Construction Infrastructure Management Assignment: Financial Analysis

This document presents a solved homework assignment on Construction Infrastructure Management. Section 1 includes financial calculations such as Net Present Value (NPV), Net Annual Value, and Net Future Value, along with loan amortization details. The assignment analyzes the financial viability of projects. Section 2 addresses conceptual questions related to project planning, site selection, and screening processes, with multiple-choice answers. The document includes tables and calculations to support the financial analysis, and a bibliography of relevant sources. This assignment provides a comprehensive overview of financial and planning aspects of construction infrastructure management, offering practical examples and theoretical concepts.

Running head: CONSTRUCTION INFRASTRUCTURE MANAGEMENT
Construction Infrastructure Management
Name of the Student:
Name of the University:
Author’s Note:

1CONSTRUCTION INFRASTRUCTURE MANAGEMENT
Table of Contents
Section 1:.........................................................................................................................................2
Answer to Question 2:.................................................................................................................2
Answer to Question 3:.................................................................................................................2
Answer to Question 4:.................................................................................................................3
Section 2:.........................................................................................................................................4
Answer to Question 4.1:..............................................................................................................4
Answer to Question 4.2:..............................................................................................................4
Answer to Question 4.3:..............................................................................................................4
Answer to Question 4.4:..............................................................................................................5
Answer to Question 4.5:..............................................................................................................5
Answer to Question 4.6:..............................................................................................................5
Bibliography:...................................................................................................................................6

2CONSTRUCTION INFRASTRUCTURE MANAGEMENT
Section 1:
Answer to Question 2:
Year Income Salvage Value Total
Interest
Rate PV
A B C D=B+C E F=D/(1+E)^A
1 $2,000 $0 $2,000 12% $1,785.71
2 $2,000 $0 $2,000 12% $1,594.39
3 $2,000 $0 $2,000 12% $1,423.56
4 $2,000 $0 $2,000 12% $1,271.04
5 $2,000 $0 $2,000 12% $1,134.85
6 $2,000 $0 $2,000 12% $1,013.26
7 $2,000 $0 $2,000 12% $904.70
8 $2,000 $0 $2,000 12% $807.77
9 $2,000 $0 $2,000 12% $721.22
10 $2,000 $25,000 $27,000 12% $8,693.28
Initial Investment $19,349.78
Answer to Question 3:
Particulars Amount
Total Loan Amount $10,000
Mortgage Payments $2,638
Nos. of Payment per period 1
Total Period (in years) 5
Rate of Return 10.00%

3CONSTRUCTION INFRASTRUCTURE MANAGEMENT
Answer to Question 4:
Year Amount Discount Rate PV
0 -$55,000.00 12% -$55,000.00
0 -$45,000.00 12% -$45,000.00
1 $30,000.00 12% $26,785.71
2 $30,000.00 12% $23,915.82
3 $30,000.00 12% $21,353.41
4 $30,000.00 12% $19,065.54
5 $30,000.00 12% $17,022.81
6 $30,000.00 12% $15,198.93
7 $30,000.00 12% $13,570.48
8 $30,000.00 12% $12,116.50
9 $30,000.00 12% $10,818.30
$59,847.49Net Present Value
Net Present Value:
Particulars Amount
Total Investment -$1,00,000.00
Annual Income $30,000.00
Total Periods (in years) 9
Total Income $2,70,000.00
Net Annual Value $18,888.89
Net Annual Value:

4CONSTRUCTION INFRASTRUCTURE MANAGEMENT
Year Amount Discount Rate FV
0 -$55,000.00 12% -$1,52,519.33
0 -$45,000.00 12% -$1,24,788.54
1 $30,000.00 12% $74,278.90
2 $30,000.00 12% $66,320.44
3 $30,000.00 12% $59,214.68
4 $30,000.00 12% $52,870.25
5 $30,000.00 12% $47,205.58
6 $30,000.00 12% $42,147.84
7 $30,000.00 12% $37,632.00
8 $30,000.00 12% $33,600.00
9 $30,000.00 12% $30,000.00
$1,65,961.81
Net Future Value:
Net Present Value
Section 2:
Answer to Question 4.1:
A planning area may be selected on the basis of
- C. either of above
Answer to Question 4.2:
In developing a transportation plan for an area, the planner emphasizes
- A. transportation needs and problems, related opportunities, and other factors
Answer to Question 4.3:
A screening process for projects of a specific type does not usually include
- C. approximate rankings

5CONSTRUCTION INFRASTRUCTURE MANAGEMENT
Answer to Question 4.4:
The first step of a screening process for site selection for projects of a specific type in a specific
area is usually the following
- C. update all previous studies of sites
Answer to Question 4.5:
In a screening process of alternative sites
- A. field reconnaissance is generally undertaken
Answer to Question 4.6:
When previous studies have indicated that the development of a site is impractical
- C. the best way to confirm this is with aerial photos and a site visit.

6CONSTRUCTION INFRASTRUCTURE MANAGEMENT
Bibliography:
Bora, B. (2015). Comparison between net present value and internal rate of return. International
Journal of Research in Finance and Marketing, 5(12), 61-71
Burns, R., & Walker, J. (2015). Capital budgeting surveys: the future is now
Gaspars-Wieloch, H. (2017). Project net present value estimation under uncertainty. Central
European Journal of Operations Research, 1-19
Piatti, I., & Trojani, F. (2017). Predictable risks and predictive regression in present-value
models