MindTap Business Statistics for Ragsdale's Spreadsheet Modeling & Decision Analysis, 8th Edition, [Instant Access], 2 terms (12 months)
8th Edition
ISBN: 9781337274876
Author: Cliff Ragsdale
Publisher: Cengage Learning US
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A company currently in the 3rd month of a 2 year project. The financial committee would like to have a cost status report. At this stage of the project there is an estimated planned value of 37500. The rate of performance is determined at 95% and the current costs have accumulated to 400000. Determine the EVM performance
Why feasibility analysis is important before starting a new venture? What important areas as entrepreneur should focus while carrying out feasibility analysis?
When the term "feasibility" is spoken, the following kinds of feasibility usually spring to mind: technical, economic, and operational feasibility. What are at least two other kinds of feasibility?
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- The optimistic cost for a project is $6,000. The pessimistic cost estimate is $24,000 and the most likely cost is $12,000. The project uses 3 sigma estimates. Using PERT what is the range of this estimate?arrow_forwardCASE STUDY P & B Energy Systems Limited (P & B), a wholly owned Zambian company proposes to construct two solar photovoltaic power plants in Lusaka and Serenje Districts (one plant in each district) to address the power shortages being experienced as a result of low water levels at Kariba Dam and Kafue Gorge. The project is estimated to cost One hundred Million United States Dollars (US$40,000,000.00) and is projected to be completed in one year. P & B proposes to embark on the project in June 2023. You are the Project Manager for New Concepts Consultants who have been contracted by the P & B to undertake the detailed design and construction supervision of the project. curement 2. Identify five risks that could affect the implementation of the project and suggest mitigation measures for each of the identified risk?arrow_forwardCASE STUDY P & B Energy Systems Limited (P & B), a wholly owned Zambian company proposes to construct two solar photovoltaic power plants in Lusaka and Serenje Districts (one plant in each district) to address the power shortages being experienced as a result of low water levels at Kariba Dam and Kafue Gorge. The project is estimated to cost One hundred Million United States Dollars (US$40,000,000.00) and is projected to be completed in one year. P & B proposes to embark on the project in June 2023. You are the Project Manager for New Concepts Consultants who have been contracted by the P & B to undertake the detailed design and construction supervision of the project. 1. As the Project Managers, you have two options for the procurement of contractors to construct the power plants, namely, Open namely, Open Bidding and Negotiations. Which method would you recommend to the P & B and why? Outline the procedure you would follow, for the recommended procurement method, to arrive at…arrow_forward
- Deavyanne Johnston, the engineering manager at TZO Chemicals, wants to complete an alternative evaluation study. She asked the finance manager for the corporate MARR. The finance manager gave her some data on the project and stated that all projects must clear their average (pooled) cost by at least 4%. a. Use the data to determine the minimum MARR.b. The study is after-taxes and part (a) provided the before-tax MARR.Determine the correct MARR to use if Te was 32% last year and the finance manager meant that the 4% above the cost is for after-tax evaluations.arrow_forwardidentify and explain the different types of feasibility study to perform before the start of a projectarrow_forwardKimpel Products makes pizza ovens for commercial use. James Kimpel, CEO, is contemplating producing smaller ovens for use in high school and college kitchens. The activities necessary to build an experimental model and related data are listed in the following table Total Cost with Crashing Immediate Predecessor(s) $2,050 $2,800 a) Based on the given information regarding the activities for the project, the project completion date = b) To reduce the duration of the project to 10 weeks at the least cost, the following is the order of what needs to be followed while crashing the activities: The first activity to crash is by 2 weeks at a per week crashing cost of Ned, one should crash activity dollars. Total cost of crashing the project to 7 weeks = and activity E by 1 week at a total per week crashing cost of dollars. dollars. weeks. dollars. dollars. Normal Activity Time (weeks) A TERSE Doo LU LỞ MATMARIATION percen 32 TON * Next one should crash activity D and activity by 2 weeks for an…arrow_forward
- Create a risk register for the project, by using the sample risk register below. Identify four potentialnegative risks, and one potential positive risk.arrow_forwardTell me the importance of Five aspects of feasibility analysis.arrow_forwardIn a paragraph form explain and Implementation/Recommendations: Identify how to implement the selected solution and what the expected results (positive and negative) might be identify an action.arrow_forward
- give an explanation to the following statements: Comparing proposed projects with the status quo often simplifies the prediction of projects’ impactsarrow_forwardYou are the project manager for a railroad construction project. Your sponsor has asked you for a forecast for the cost of project completion. The project has a total budget of $80,000 and CPI of .95. The project has spent $25,000 of its budget so far. How much more money do you plan to spend on the project? A. $80000 B. $84,210 C. $59,210 D. $109,210arrow_forwardWhat does a project’s NPV of $1,500 mean?arrow_forward
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