7. Your project is expected to run for three consecutive years. Your organization is introducing earned value management as part of the planning and managing of this project. The project budget R100 000. The budget is for the three years. You are exactly 18 months into the project and 30 % of the total budget has been spent and 40 % of the work is complete. What is the BAC?

7. Your project is expected to run for three consecutive years. Your organization is introducing earned value management as part of the planning and managing of this project. The project budget R100 000. The budget is for the three years. You are exactly 18 months into the project and 30 % of the total budget has been spent and 40 % of the work is complete. What is the BAC?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A certain investment costs $3400. The investment produces income of $1500 at the end of the first…

A: Nothing is mentioned in this question with respect to the discount rates or finding the present…

Q: Carson, Inc. invests in cost saving technology. Based on the data below, the annual cost savings…

A: The gain achieved from activities that lower an organization's overall spending on assets that…

Q: Example: A new process for a manufacturing process will have a first cost of $55,000 with annual…

A: Payback period= First costs / Annual cash flowIt doesnt take into consideration time value of money

Q: Revenues generated by a new fad product are forecast as follows: Year Revenues 1 $26,145 2…

A: Depreciation = ( Cost - salvage value ) / Useful Life Depreciation = ( 40000 - 0 ) / 5 Depreciation…

Q: Project Alpha requires an immediate investment of $16,000 and an additional investment of $12,000…

A: Net Present Value = Present Value of Cash Inflows - Present Value of Cash Outflows

Q: Question 2 A project that costs $21,500 today will generate cash flows of $7,700 per year for seven…

A: As per formula of payback period Payback period = Initial project cost/Annual cash inflow Where…

Q: #1: An investment will cost $10,000 today for equipment plus expenses for labor and materials at a…

A: Discounted payback period is a capital budgeting tool. Here we look at the time period that it takes…

Q: The cost of the project is $100,000. You expect the project to make $500,000 in 7years (CF of year 7…

A: The IRR for this project is C) 22.01%Explanation:To find the Internal Rate of Return (IRR) for the…

Q: launching new software with in 5 months at a cost of $ 5000 can be categorized under a. Scope…

Q: You are responsible to manage an IS project with a 4-year horizon. The annal cost of the project is…

A: Return on investment is the income earned on an investment throughout the defined investment…

Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

7. Your project is expected to run for three consecutive
years. Your organization is introducing earned value
management as part of the planning and managing of this
project. The project budget R100 000. The budget is for
the three years. You are exactly 18 months into the
project and 30 % of the total budget has been spent and
40 % of the work is complete.
What is the BAC?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2 Determining the BAC (Budget At Completion)

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

9) A project has an initial cost of $60,000, expected net cash inflows of $13,000 per year for 8 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places. ________years
Your goal is to be able to withdraw $5,000 for each of the next ten years beginning one year from today. The return on the investment is expected to be 12%. The amount that needs to be invested today is closest to:
An electronic device is available that will reduce this year’s labor costs by $8,000. The equipment is expected to last for 10 years. Labor costs increase at a rate of 5% per year and the interest rate is 10% per year. Solve, a. What is the maximum amount that we could justify spending for the device? b. What is the uniform annual equivalent value (A) of the labor costs over the eight-year period?
You have been offered a project paying $300 at the beginning of each year for the next 20 years. What is the maximum amount of money you would invest in this project if you require 9 percent rate of return to your investment? OA. $2,739 B. $2,985 C. $15,348 OD. $16,729
A new process for a manufacturing process will have a first cost of $45,000 with annual costs of $38,000. Extra income associated with the new process is expected to be $62,000 per year. What is the discounted payback period at i = 12% per year? 2.84 3.23 2.25 4.52
You are a senior manager at Poeing Aircraft and have been authorized to spend up toK400,000 for projects. The three projects you are considering have the followingcharacteristics:Project A. Initial investment of K280,000. Cashflow at year 1 will be 190,000 while in year2, will reduce to K170,000. This is a plant expansion program and as such, the requiredrate of return is 10.3 percent.Project B. Initial investment of K390,000. Cashflow at year 1 will be 270,000 while in year2, will reduce to K240,000. This is a new product development project where the requiredrate of return is 20.4 percent.Project C. Initial investment of K230,000. Cashflow at year 1 will be 160,000 while in year2, will increase to K190,000. This is a market expansion project where the required rateof return is 15.7 percent.Please offer your recommendations, back your analysis with using the following methods: (i) (ii) (iii) Payback period IRR NPV
You are investigating the cost of project to renovate the kitchens in a large apartment building, the payments for this work will be $32,500 up front and $13500 a month for 8 months, followed by a completion payment of $31500. To start this project you will need to purchase equipment for $70,000 at the beginning of the project and you expect monthly materials and operating costs to be about $7,500. The Rate of Return is 12%. What is the total PV of the 8 monthly payments of $13500 per month. You should assume that the payments are made at the end months 1 through 8. (So this is a ordinary simple annuity). Round your answer to the nearest penny. Your Answer: Answer
You are constantly trying to save your company some money. One decision you encounter is a make or buy decision for the new project manager. The make solution has an upfront cost of $25,000 plus $3,000 per month as a maintenance fee. The buy solution has an upfront cost of $20,000 plus $3,250 per month as a maintenance fee as well as a $250 per month subscription fee. What is the minimum usage period in months required for the company to justify the make decision, and if the project will last 1 year should the company make or buy?
What is the rate of return on an investment of $10,606 if the company will receive $2,000 each year for the next 10 years? Please show work.
You need to prepare for three large, upcoming project expenditures which will begin 3 years from now. The first required cash flow will be $56,000, the next year will require $94,000, and then $132,000. If you begin setting aside funds from your current budget next month, how much do you need to save each month in order to have enough to cover all three cash flows the day the first cash flow comes due? Assume you can invest these funds at 8.4 percent APR, compounded monthly. Please demonstrate how to calculate using a financial calculator, when possible.
You are equipping an office. The total office equipment will have a first cost of2.0Mand a sal-vage value of$200,000. You expect the equipment will last 10 years. Use a spreadsheet to compute the40%bonus depreciation with MACRS depreciation schedule.
(4) Evaluate the ROI.