Sjrsy Essay

The IRR of the home appliance project is 11.29% and the IRR of the agricultural machinery project is 10.70%, which are both greater than the calculated cost of capitals. Therefore, in

The company does not have a sure mission and is engaged in the wrong type of marketing philosophy. The company need develop a mission.

stems from two main factors, lack of awareness of the company’s products due to limited

The aim of the Target 5 Days (HAF-T5) project is to reduce government’s impact on the development assessment process through reductions in assessment time. This will reduce the holding costs and infrastructure costs for applicants, contributing greatly to the bottom line overheads experienced by developers, both professional and non professional (without considering the greater issue of land supply).

The earned value analysis has led to see the project will control the actual budget, which is $18,000. The actual cost at the period 4 totaled to be $7,050, and total of earned value at period 4 is $7,750. The estimate at completion for typical is $22,550. These variances show that this project will exceed the original budget of $18,000, so we are still exceeding the project’s original budgets. The SPI is less than a value of 1, which means that the project will also over schedule and activity plans. The requests immediate actions from the third-party company.

4. We estimated the project net present value to be -$19,125,000 without tweaking any of the financial assumptions in the capital request form. So to make the net present value positive we would have to change something. We first started by adding 10% to the utilization for every year. This alone didn’t make a huge difference so we had to additionally lower the hourly wage to $18.19/hr. This gave us a net present value of about $35,000. This seems unreasonable or at the very least unfair to lower each worker’s hourly wage while increasing the workload. The second way we tried to get the net present value positive was by just decreasing the hourly wage of each employee from $20/hr to $16.02/hr. This gave us a net present value of about $33,000. This seems like a more reasonable solution, but it is dangerous because it could cause workers to quit. Therefore we wouldn’t recommend this project. Both solutions that lead to a positive net present value are too extreme and risky. Also this only leads to a positive net present value, not an extremely profitable one. This project shouldn’t be undertaken.

The stakeholders have also have also decided on a $200,000 budget. This is a realistic goal; however there are some risks involved in the process. One risk that may be incurred is that one or more personnel may leave the project for one reason or another. There shall be a “pool” of qualified contract project professionals, on stand-by, just in case this happens. Another risk that may possibly happen is the lack of resources. There will be a process put in place to contact appropriate personnel should resources, such as, equipment, monies, personnel, etc. run short.

Eichenberger, J. (1998). Project management, part III budgets for projects. AAOHN Journal, 46(5), 268-70. Retrieved from http://search.proquest.com/docview/101346

It lacks thorough understanding of its target market (the needs of the present and future customers).

a. What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project?

The ARR for the project is 12.8% this is less than required 15%. Therefore the project should be rejected.

Calculate the effect that a revision of its cost of capital will have on the Lal Plr project’s NPV. Comment on the results.

I will consider the project dates stated in question 3 for this question and also consider that

The following paper analyzes a project from financial perspectives using the capital budgeting techniques like Net Present Value (NPV) and Internal Rate of Return (IRR).

In allocation of resources, some projects are given a higher priority than the others based upon their importance for the country. Further some projects are considers to belong to the core o9f the development process i.e. has a major linkage value regarding the viability of other projects depending upon it e. g. infrastructural, power sector and projects producing primary products.