Q6: A construction project will have a Base cost of $3,250,000. There is a 5 percent chance that the costs will increase by $250,000. There is a 20 percent chance that the project will finish ahead of schedule and win incentive reward of $40,000. There is a 10 percent chance that an accident will add $105,000 to the cost. Calculate the following: a) calculate the contingency reserve b) What is the expected value of the project? c) What is the best case scenario and its value? d) What is the worst case scenario and its value?

Q6: A construction project will have a Base cost of $3,250,000. There is a 5 percent chance that the costs will increase by $250,000. There is a 20 percent chance that the project will finish ahead of schedule and win incentive reward of $40,000. There is a 10 percent chance that an accident will add $105,000 to the cost. Calculate the following: a) calculate the contingency reserve b) What is the expected value of the project? c) What is the best case scenario and its value? d) What is the worst case scenario and its value?

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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