ECE4099 Project: Fibre Optic Cable Installation in Greater Bendigo

This report provides a comprehensive evaluation of a project involving the installation of 400km of fibre optic cable in the Greater City of Bendigo, designed to replace existing above-ground cables and increase telecommunication network capacity. The company considers two alternatives: Project A, which involves laying the cable underground, and Project B, which involves installing the cable above ground. The evaluation encompasses financial management, including capital budgeting calculations (NPV, BCR, IRR, and Payback Period), time management with network diagrams and Gantt charts, and environmental evaluations covering social, technical, economic, political, demographic, and custom/tax factors. Ultimately, the report recommends the best alternative based on a thorough justification of the chosen project's financial viability, scheduling efficiency, and environmental impact.

Running head: PROFESSIONAL PRACTICE
Installation of 400km of fibre optic cable in the Greater City of Bendigo
Name of the Student:
Name of the University:

1PROFESSIONAL PRACTICE
Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Project evaluation and management..........................................................................................2
2.1 Financial management...........................................................................................................3
2.1.1 Calculation of capital budgeting for project A...............................................................3
2.1.2 Calculation of capital budgeting for project B...............................................................5
2.2 Time management.................................................................................................................8
2.2.1 Scheduling and time planning for project A...................................................................8
2.2.2 Scheduling and time planning for project B.................................................................13
2.3 Environmental evaluations..................................................................................................18
2.3.1 Social factors................................................................................................................18
2.3.2 Technical factors...........................................................................................................18
2.3.3 Economic factors..........................................................................................................19
2.3.4 Political factors.............................................................................................................20
2.3.5 Demographic factors.....................................................................................................20
2.3.6 Custom and tax factors.................................................................................................21
3.0 Summary on the project evaluation and management.............................................................21
4.0 Recommendation on chosen alternative for the project..........................................................22
References......................................................................................................................................24
Bibliography..................................................................................................................................26

2PROFESSIONAL PRACTICE
1.0 Introduction
The project work is based on installation of 400km of fibre optic cable in the Greater City
of Bendigo. The installation of cable will replace the above ground cable link in operation which
plays a major role into increasing capacity of the local telecommunication network by percentage
of 200. The company suggests two alternative ways to install the cable. Project A is based on
laying the cable underground and project B is based on installing the cable above ground. Both
the project work is evaluated based on financial, time and environmental factors to consider
which of the alternatives is best for the project.
The business report is based on comparing of two project works based on three
evaluation factors such as financial management, time management and environmental
evaluations. Among two of the project alternatives, the company selects one of the alternative
which is best suitable for the project work.
2.0 Project evaluation and management
For both the project A and B, the company evaluates the financial and time management
to choose which of the alternative project is best to install 400km of fibre optic cable in the
Greater City of Bendigo. Apart from the project management, the environmental evaluations are
also done to analyze which of the project alternatives are better for the company.

3PROFESSIONAL PRACTICE
2.1 Financial management
2.1.1 Calculation of capital budgeting for project A
ALTERNATIVE 1: Laying of cable underground
Years
Particulars 0 1 2 3 4 5 6 7 8 9 10 11
Initial
Investment:
Legal &
Administrative
Cost
-$200,000.00
Solar Panel -$350,000.00
Design Cost -$300,000.00
Cost of Building -$350,000.00
Electronic
Equipment
-$600,000.00
Fibre Optic
Cable
-
$4,000,000.0
0
Cost of Digging
& Laying Cable
-$250,000.00
Total Initial
Investment
-
$6,050,000.0
0
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

4PROFESSIONAL PRACTICE
Operational
Cash Flow:
Government
Subsidy Receipts
$1,000,000.0
0
$2,000,000.0
0
$2,000,000.0
0
Fees Receipts
from Carriers
$800,000.00 $800,000.00 $800,000.00 $800,000.00 $800,000.00 $800,000.00 $800,000.00 $800,000.00 $800,000.00 $800,000.00 $800,000.00
Ongoing
Maintenance
Cost
-$14,000.00 -$14,000.00 -$14,000.00 -$14,000.00 -$14,000.00 -$14,000.00 -$23,000.00 -$23,000.00 -$23,000.00 -$23,000.00 -$23,000.00
Net Operating
Cash Flow
$1,000,000.0
0
$786,000.00 $786,000.00 $786,000.00 $786,000.00 $2,786,000.0
0
$786,000.00 $777,000.00 $777,000.00 $777,000.00 $2,777,000.0
0
$777,000.00
Net Cash Flow -
$5,050,000.0
0
$786,000.00 $786,000.00 $786,000.00 $786,000.00 $2,786,000.0
0
$786,000.00 $777,000.00 $777,000.00 $777,000.00 $2,777,000.0
0
$777,000.00
Cumulative Cash
Flow
-
$5,050,000.0
0
-
$4,264,000.0
0
-
$3,478,000.0
0
-
$2,692,000.0
0
-
$1,906,000.0
0
$880,000.00 $1,666,000.0
0
$2,443,000.0
0
$3,220,000.0
0
$3,997,000.0
0
$6,774,000.0
0
$7,551,000.0
0
Discount Rate 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Discounted Cash
Flow
-
$5,050,000.0
0
$714,545.45 $649,586.78 $590,533.43 $536,848.58 $1,729,886.8
1
$443,676.51 $398,723.86 $362,476.23 $329,523.85 $1,070,653.7
1
$272,333.76
NPV $2,048,788.9
7
BCR 2.248
IRR 17.31%
Payback Period
(in years)
4.684

5PROFESSIONAL PRACTICE
2.1.2 Calculation of capital budgeting for project B
ALTERNATIVE 2: Installing of cable above ground
Years
Particulars 0 1 2 3 4 5 6 7 8 9 10 11 12
Initial
Investment:
Legal &
Administrati
ve Cost
-
$150,000.00
Fibre Optic
Cable
-
$4,000,000.
00
Design Cost -
$350,000.00
Cost of
Equipment
& Installtion
-
$400,000.00
Cost of Poles -
$300,000.00
Cost of
Installation
of Poles &
Cables
-
$250,000.00
Total Initial
Investment
-
$5,450,000.
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

6PROFESSIONAL PRACTICE
00
Operational
Cash Flow:
Government
Subsidy
Receipts
$2,000,000.
00
$3,000,000.
00
Fees
Receipts
from
Carriers
$800,000.00 $800,000.00 $800,000.00 $800,000.
00
$800,000.
00
$800,000.00 $800,000.00 $800,000.00 $800,000.00 $800,000.00 $800,000.00 $800,000.00
Ongoing
Maintenance
Cost
-$15,000.00 -$15,000.00 -$15,000.00 -
$15,000.0
0
-
$15,000.0
0
-$15,000.00 -$15,000.00 -$22,000.00 -$22,000.00 -$22,000.00 -$22,000.00 -$22,000.00
Net
Operating
Cash Flow
$2,000,000.
00
$785,000.00 $785,000.00 $785,000.00 $785,000.
00
$785,000.
00
$785,000.00 $3,785,000.
00
$778,000.00 $778,000.00 $778,000.00 $778,000.00 $778,000.00
Net Cash
Flow
-
$3,450,000.
00
$785,000.00 $785,000.00 $785,000.00 $785,000.
00
$785,000.
00
$785,000.00 $3,785,000.
00
$778,000.00 $778,000.00 $778,000.00 $778,000.00 $778,000.00
Cumulative
Cash Flow
-
$3,450,000.
00
-
$2,665,000.
00
-
$1,880,000.
00
-
$1,095,000.
00
-
$310,000.
00
$475,000.
00
$1,260,000.
00
$5,045,000.
00
$5,823,000.
00
$6,601,000.
00
$7,379,000.
00
$8,157,000.
00
$8,935,000.
00
Dioscount
Rate
10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Discounted
Cash Flow
-
$3,450,000.
00
$713,636.36 $648,760.33 $589,782.12 $536,165.
56
$487,423.
24
$443,112.04 $1,942,303.
48
$362,942.74 $329,947.95 $299,952.68 $272,684.25 $247,894.78

7PROFESSIONAL PRACTICE
NPV $3,424,605.
52
BCR 2.639
IRR 25.78%
Payback
Period (in
years)
4.395
The above two tables analyze the financial management of the two alternative projects which shows effective management of money so as to accomplish objectives of organization. For project
A, NPV is $2,048,788.97 with BCR is 2.248; IRR is 17.31% with a payback period of 4.684. In project B, NPV is $3,424,605.52 with BCR of 2.639, IRR of 25.78% and the payback period is 4.395.
Therefore, in terms of financial statement, project B is better as compared to project A as Project B has higher NPV. Therefore, the investor should investigate into project B has NPV is positive with
highest NPV of available investment options.

8PROFESSIONAL PRACTICE
2.2 Time management
2.2.1 Scheduling and time planning for project A
Network Diagram
Figure 1: Network diagram for project A
(Source: Created by author)

9PROFESSIONAL PRACTICE

10PROFESSIONAL PRACTICE
Gantt chart
WBS Task Name Duration Start Finish
0
Project A: Laying the fibre optic cable
underground
55 wks Tue 4/17/18 Mon 5/6/19
1 Design phase 7 wks Tue 4/17/18 Mon 6/4/18
1.1
Design of building to house electronic
equipment
2 wks Tue 4/17/18 Mon 4/30/18
1.2
Preparation of submission for government
approval of environmental effects statement
(ESS)
4 wks Tue 5/1/18 Mon 5/28/18
1.3 Planning permit 1 wk Tue 5/29/18 Mon 6/4/18
2 Power phase the project work 6 wks Tue 6/5/18 Mon 7/16/18
2.1 Supply of the solar panels 3 wks Tue 6/5/18 Mon 6/25/18
2.2
Design and specify high efficiency
Australian solar panels to power the project
3 wks Tue 6/26/18 Mon 7/16/18
3 Ordering phase of project resources 16 wks Tue 7/17/18 Mon 11/5/18
3.1 Prepare a list of resources required 4 wks Tue 7/17/18 Mon 8/13/18
3.2 Order the electronics to control 3 wks Tue 8/14/18 Mon 9/3/18

11PROFESSIONAL PRACTICE
equipment
3.3 Take delivery of electronics 3 wks Tue 9/4/18 Mon 9/24/18
3.4 Order optical fibre cable 2 wks Tue 9/25/18 Mon 10/8/18
3.5 Taking the delivery 4 wks Tue 10/9/18 Mon 11/5/18
4 Project approval phase 6 wks Tue 11/6/18
Mon
12/17/18
4.1 Government approval of ESS 1 wk Tue 11/6/18
Mon
11/12/18
4.2 Planning permit 5 wks
Tue
11/13/18
Mon
12/17/18
5 Digging phase 6 wks
Tue
12/18/18
Mon 1/28/19
5.1 Dig the trenches 3 wks
Tue
12/18/18
Mon 1/7/19
5.2 Lay the optical fibre 3 wks Tue 1/8/19 Mon 1/28/19
6 Construction phase 4 wks Tue 1/29/19 Mon 2/25/19
6.1 Construct of building to house equipment 4 wks Tue 1/29/19 Mon 2/25/19
7 Connection phase 4 wks Tue 2/26/19 Mon 3/25/19