You are managing a software project with an initial budget
estimate of 2 million dollars. During...
You are managing a software project with an initial budget
estimate of 2 million dollars. During your interim cost and
schedule performance analysis, you figured out that:
You should have spent $500,000 based on your initial plans and
1,000 man/days of schedule activities
You spent $600,000 and completed 1,100 man/days of schedule
activities which should have cost $450,000 based on your initial
plans.
You re-estimated the budget for the remaining work to be done
as $1,500,000.
Calculate the following:
What is the CPI and SPI of the project respectively?
What is the CV and SV of the project respectively?
What is the Variance at Completion?
What is the TCPI based on your new Estimate at Completion
value?
What is the status of your project?
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Assume a new project requires an initial investment of $10
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c.) The firm should accept the project, as the...
Assume a new project requires an initial investment of $10
million dollars, with ensuing cash flows of $2, $4 and $5 million
in years 1, 2 and 3. Assuming the company's WACC is 10%, which of
the following statements is true?
The firm should reject the project, as the IRR is lower than the
WACC.
The firm should accept the project, as the IRR is higher than
the WACC.
The firm should accept the project, as the NPV is positive....
Assume a new project requires an initial investment of $10
million dollars, with ensuing cash flows of $2, $4 and $5 million
in years 1, 2 and 3. Assuming the company's WACC is 10%, which of
the following statements is true?
The firm should reject the project, as the IRR is lower than the
WACC.
The firm should accept the project, as the IRR is higher than
the WACC.
The firm should accept the project, as the NPV is positive....
Initial Cash flow
investment
Project A $5 million $2 million per year for
four years
Project B $3 million $1 million per year for five
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Project C $2 million $1 million per year for four
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Project D $3 million $1.5 million per year for
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