It is time to estimate your project’s budget. Your project sponsor has set a limit on...

It is time to estimate your project’s budget. Your project sponsor has set a limit on the amount of money you can spend. You know your budget will exceed that limit. Using the information covered in the required readings, describe the importance of properly establishing a project budget. What is the best method or methods to accurately estimate the budget for a unique project? What controls can you implement to keep your budget in check?

Expert Solution

It is crucial to establish a project budget because it sets clear criteria when defining the aims of a project. A project should be able to accomplish what is required within its scope, and a budget seeks to prevent misallocating the money, which allows the funds to be channeled to the right level of project work.

An implemented budged aids the future planning process; Additionally, cost planning plays a vital role in ensuring the project manager can know how to minimize costs to ensure the project is successful, both before and after completion. Essentially, a project is finished by realizing how much money can be spent during the development of the project.

Budgeting also aids with the cost estimating process, as all of the project elements receive costs that can be handled based upon the planned budget. The cost estimate can assist with assessing the success of a project.

Implementing a proper budgeting process will also test the efficiency of a project, the time it takes, and the execution of duties. Ultimately, this is because it would have provided enough money or financial support required to complete the project.

Some controls that you can implement to keep the budget in check include resource usage, time management, management participation, and provision of information. Resource utilization should consist only of what is outlined within the budget. The time the contractor has taken to complete the phases of the project should also be taken into consideration – each step of the project mustn't waste money. Management should adequately participate in the budgeting process so that they have an understanding of where money can be allocated. Details should consistently be provided for spending throughout the life of the project.

keosha answered 1 year ago

CREATING THE PROJECT SCHEDULE - PROJECT MANAGEMENT Your project sponsor is concerned about the duration of...

CREATING THE PROJECT SCHEDULE - PROJECT MANAGEMENT Your project sponsor is concerned about the duration of your project schedule and thinks that you need to cut some time out of the schedule. He thinks that all of the testing that you have included in the plan is not necessary. How would you respond to this? What are the risks of removing the testing with regard to the overall project?

You are working on a project to install 200 new computers for your department. Your sponsor...

You are working on a project to install 200 new computers for your department. Your sponsor is the CTO (Chief Technology Officer). Although the CTO is your key stakeholder, you know that many other individuals will affect the success or failure of your project. This is the first time you have worked with this CTO, and you have heard that he often changes his mind about the requirements and due date. In fact, you heard that a PM who failed...

Your project sponsor is Shirley, the Chief Information Officer. She is a member of the hospital...

Your project sponsor is Shirley, the Chief Information Officer. She is a member of the hospital leadership team who controls the IT budget and resources. She understands the requirements and how the portal will integrate with other systems. Shirley wants you to use agile project management practices to deliver the functionality in increments, ensuring a high-quality solution that meets user needs. You review the requirements and technical approach drafted by the IT team and they seem complete. Shirley is anxious...

When you created your Perimeter Design Project, if there had been a set budget of $10,000,...

When you created your Perimeter Design Project, if there had been a set budget of $10,000, how would it have affected your plan? What would you focus on, why? Research two real world examples where investing in perimeter security could have saved a company a lot of money.

What does it mean when a capital budgeting project has an NPV of zero? The project’s...

What does it mean when a capital budgeting project has an NPV of zero? The project’s IRR will be less than the required hurdle rate for the project The firm’s stockholders will earn a positive return, but it will be less than their required return, given the risk of the investment The firm’s security holders will earn their required rate of return, given the risk of the investment The firm’s stockholders will earn a negative return none of the above

When a capital budgeting project has an NPV of zero, what does this mean? The project’s...

When a capital budgeting project has an NPV of zero, what does this mean? The project’s IRR will be less than the required hurdle rate for the project The firm’s stockholders will earn a positive return, but it will be less than their required return, given the risk of the investment The firm’s stockholders will earn a negative return The firm’s security holders will earn their required rate of return, given the risk of the investment none of the above

Nippon Inc is considering a project that has an up-front cost of $500,000. The project’s subsequent...

Nippon Inc is considering a project that has an up-front cost of $500,000. The project’s subsequent cash flows depend on whether its products become the industry standard. There is a 60% chance that products will become the industry standard, in which case the project’s expected cash flows will be $120,000 per year for the next 7 years. There is a 40% chance that products will not become the industry standard, in which case the project’s expected cash flows will be...

Shopify, Inc. is considering a project that has the following cash flows. The project’s appropriate discount...

Shopify, Inc. is considering a project that has the following cash flows. The project’s appropriate discount rate is 6.7%. Year 0 1 2 3 4 Cash flows -$9200 $3300 $3400 $0 $4100 Calculate the project's NPV (round your answer to the nearest whole number). Answer:

Your division is considering the following project. It’s WACC is 10%. The project’s after tax flows...

Your division is considering the following project. It’s WACC is 10%. The project’s after tax flows are as follows: Project A 0 1 2 3 4 -60$. $15. $25. $25. $30 a. Compute the NPV b. Compute the IRR c. Compute the MIRR d. Compute the discounted payback

Your QA team that has prescribed a set of procedures to be followed by the project...

Your QA team that has prescribed a set of procedures to be followed by the project team whenever a modified code/patch/application is released to the client. Your Project Lead informs that a release is required urgently by an important client. He says, all the steps in the procedure prescribed have been followed but due to time constraints each step is covered only to the extent of 30-50%. Further, the client needs the release in the next 2 hours itself. What...

Question