part 1) One weakness of CPI is that it cannot be calculated until all the costs...

part 1)

One weakness of CPI is that it cannot be calculated until all the costs for a specific analysis period have been entered into the accounting system. Because suppliers and subcontractors usually bill the project at the end of the month, the CPI can only be calculated monthly, limiting its use as a cost control tool.

Group of answer choices

true

false

part 2)

A LCPI greater than 1.0 does not necessarily mean the project cost is under the budget as it ignores materials, subcontractor, and equipment costs.

Group of answer choices

true

false

Expert Solution

Part 1)

True,because suppliers and subcontractors usually bill the project at the end of the month, the CPI can only be calculated monthly, limiting its use as a cost control tool.

Part 2)

False,If CPI is greater than 1 then the project is under the budget whether or not it ignores materials, subcontractor, and equipment costs but it means that the project is performing well against the budget.

jeff jeffy answered 2 years ago

Select all the correct answers: A) One weakness of the regular payback method is that it...

Select all the correct answers: A) One weakness of the regular payback method is that it ignores what happens after the initial cost is recovered. The discounted payback method resolves this issue B) The crossover rate is the cost of capital in which two projects have the same NPV C) A firm has a WACC of 15%. A project requires an initial cash flow of $5,000, then it will pay $1,000 for 10 years. The discounted payback of this project...

The Weighted Average Cost of Capital is calculated using all the different costs in an after-tax...

The Weighted Average Cost of Capital is calculated using all the different costs in an after-tax basis. However, not all the components of the WACC require an adjustment for taxes. What component of the capital structure needs to be adjusted by taxes for the WACC calculation? Retained Earnings Common Equity Cash Long Term Debt Preferred Equity

PART 1) Which of the following statements(s) is/are correct? Group of answer choices An weakness of...

PART 1) Which of the following statements(s) is/are correct? Group of answer choices An weakness of SPI is that it does not take into account if the project's critical path is on schedule. It is possible to have a SPI greater than 1.0 while the project is actually behind schedule. An weakness of SPI is that it does not take into account of activites/tasks that have a budgeted cost of zero, such as tasks dealing with submittals and ordering of...

1. The CPI is 1.00 in year one and 1.25 in year two. If the nominal...

1. The CPI is 1.00 in year one and 1.25 in year two. If the nominal wage is $20 in year one and a contract calls for the wage to be indexed to the CPI, what will be the nominal wage in year two? 2. If in the economy, business saving equals $220 billion, household saving equals $35 billion and government saving equals –$150 billion, what is the value of private saving? 3. In country Alpha with 400 million people...

This is all one question Part 1 Suppose you want to buy a stock in a...

This is all one question Part 1 Suppose you want to buy a stock in a firm called “Infinity” the firm states that they expect to pay you $1 per year forever. What is a fair price for this stock if an investment in similar firms return 5% per year? (The computation is based on time value of money computations we learned in Chapter 5. Hint: Is this a perpetuity, if so how would you value it (what is the...

These are all part of one question so it can be answered in paragraph format: 1....

These are all part of one question so it can be answered in paragraph format: 1. How is a theory different from a hypothesis? 2. How is a virus different from a bacterium? 3. Do viruses evolve? 4. List various factors that affect the current spread of COVID-19 in the biosphere. 5. How is correlation different from causation - particularly as it relates to the webquest below: Recently reports have come out in the media and from scientists that people...

1 Suppose the value of the CPI is 1.26 in year one, 1.285 in year two...

1 Suppose the value of the CPI is 1.26 in year one, 1.285 in year two and 1.298 in year three. Assume also that the price of computers increases by 4% between year one and year two, and by another 4% between year two and year three. Between year two and one, and year three and two, the price level is increasing, the inflation rate is _______, and the relative price of computers is _________. (Increase or decrease for the...

If one? three-digit number? (0 cannot be a left? digit) is chosen at random from all...

If one? three-digit number? (0 cannot be a left? digit) is chosen at random from all those that can be made from the following set of? digits, find the probability that the one chosen is not a multiple of 5 . (0,1,2,3,4,5,6)

List all cities that cannot be reached from Seattle through a direct flight nor with one...

List all cities that cannot be reached from Seattle through a direct flight nor with one stop (i.e., with any two flights that go through an intermediate city). Warning: this query might take a while to execute. We will learn about how to speed this up in lecture. Name the output column city. Order the output ascending by city.

1 The Nowra Company has assembled the following data pertaining to certain costs that cannot be...

1 The Nowra Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Nowra Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. Month Cost Hours January $40 000 3500 February 24 400 2000 March 31 280 2450 April 36 400 3000 May 44 160 3900 June 42 400 3740 How is the cost function stated?...

Question