A city is considering building a bridge across a river that runs through the city. Currently, 1.5 million people have to drive around the river for 1 hour to get to the other side of the city. There have been complaints about congestion and pollution on the road. The new bridge will cut commuter time by half. It is expected that 1 million commuters will use the bridge on a daily basis, increasing to 2 million in the next 10 years.The new bridge will cost $80 million to build. A consultant has been hired to construct the bridge and will be able to high 40 employees on full time basis to complete the construction over one year. The city will spend $100,000 to maintain the bridge every year. The city is planning to charge a toll of $2 per trip for the use of the bridge. The new bridge is also expected to reduce congestion on the current road. How will you quantify and monetize all your identified Costs Benefits What time frame will you use and why? With the following criteria, determine whether the project is Economically feasible Net Present Value Criteria Benefit Cost Ratio
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
A city is considering building a bridge across a river that runs through the city. Currently, 1.5 million people have to drive around the river for 1 hour to get to the other side of the city. There have been complaints about congestion and pollution on the road. The new bridge will cut commuter time by half. It is expected that 1 million commuters will use the bridge on a daily basis, increasing to 2 million in the next 10 years.The new bridge will cost $80 million to build. A consultant has been hired to construct the bridge and will be able to high 40 employees on full time basis to complete the construction over one year. The city will spend $100,000 to maintain the bridge every year. The city is planning to charge a toll of $2 per trip for the use of the bridge. The new bridge is also expected to reduce congestion on the current road.
- How will you quantify and monetize all your identified
- Costs
- Benefits
- What time frame will you use and why?
- With the following criteria, determine whether the project is Economically feasible
Net Present Value Criteria- Benefit Cost Ratio
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