Student Common Room: Financial Management

Additionally, if down the road cash flow becomes an issue, a quick sale of the facility may not be possible.

Cost Management is used to outline the costs of planning a project. Estimating costs through data collection, design planning, and budgeting are used throughout facility planning to reduce costs

592 Week 1 DQ 1 WBS Construction PROJ 592 Week 1 DQ 2 Project Cost Estimates and Assumptions PROJ 592 Week 2 DQ 1 Cost Components PROJ 592 Week 2 DQ 2 Estimating Processes PROJ 592 Week 3 DQ 1 Project Schedules PROJ 592 Week 3 DQ 2 Sensitivity Analysis PROJ 592 Week 4 DQ 1 Resource Allocation and Leveling PROJ 592 Week 4 DQ 2 Advanced Schedule Techniques PROJ 592 Week 5 DQ 1 Earned Value Calculation PROJ 592 Week 5 DQ 2 Project Monitoring and Control & EV PROJ 592 Week 6 DQ 1 Forecasting Project Completion Cost PROJ 592 Week 6 DQ 2 Project Control PROJ 592

Budgets and Planning. To begin with, the program, like the organization, fosters an open and collaborative environment for the process to take place. In this regard, it is, therefore, impossible for any one space or environment to be able to accommodate every conceivable project or application that is “thought up”. Therefore, certain perimeters and guidelines need to be established to assess costs with the program and help determine a course of action in future planning. As we are discussing costs, we assume there is a

Since Elijah Heart Clinic patient inflow has increased, there are plans for a $75 million dollar expansion and improvement project to manage the patient inflow. The plan is to open a new facility with 100 private rooms and include the latest technology. Not only will there be new construction but the clinic will also renovate the existing facilities. I based my decisions on the focus of the clinic. The focus is to make sure that the changes will continue to provide patients quality care. Also when making my decision, I have to keep in mind that the strategy chosen will result in the success or failure of the clinic. To choose the best option, I had to analyze the cost of funding, the net present value, collateral requirements, prepayment limitations, and deadline for using the fund.

1.1 This report will provide guidance for the procedure of preparing an estimate for building works. It will include the factors that affect the overall cost of the project explaining them in general as well as explaining them on the example provided.

By creating a budget this facility will be better prepared in knowing how much money they spend and

New High School for Summit City project is thoroughly communicated to all members involved and is located in the north section of Summit City, Ontario. The owner of this project is Prince Edward Regional Board of Education. Summit City has two public high schools and the Board of Education applied for ministry approval for the construction of a new education facility, with a total of $19,000,000. The existing schools would have to be teared down, costing them a total of $2,600,000, so that one site can be sold to build a condominium and the other site can be used to the board of educational regional office. I am appointed to give the owner, Prince Edward Regional Board of Education, an idea of which is the best project delivery methods for this kind of case scenario. The three methods of project delivery are:

Pilgrim Assurance is a case that involves a sealed bid auction. Therefore, the auctioneers will need to sell the building to the highest bidder involved at a minimum bid of $15 million. David Bailey is given the decision to decide on how much to bid for an office building. Furthermore, he needs to make the decision whether to lease it as office space or to convert this office space into condominiums. In this case, I will analyze the goals and objectives of Bailey as well as the other participants. The sealed bid auction indicates that they are willing to take a chance on the market and try to receive high bids. There is no problem with the government participant besides using permits to do renovations. There is

This is an assessment of the different costs and benefits of two mutually exclusive capital projects involving the use of an underutilized space located on the second floor of the main building of Phuket Beach Hotel (PBH). The first project, Planet Karaoke Pub (PKP) offered to sign a four-year lease agreement with (PBH) while the second project, Beach Karaoke Pub (BKP), is a pub the PBH itself, plans to put up and to operate for six years. PKP proposed to pay a monthly rental of 170,000 baht for the first two years with a 5 % increment for the next two years. Renovation costs for PKP ranged between 770,000 and 1,000,000 baht. PKP will be charged

3. The new system allows charging additional services required by the clients, generating more revenue. 4. Knowing which are the cost drivers , it will be possible to control costs more effectively (reducing fixed costs and increasing net margin) 5. Market analysis with direct competitor in the region suggests that studio prices are at least 21% lower and one bedroom suite prices are at least 40% lower than the competition in the new pricing model. Comparison with the general market suggests similar findings. MAIN REPORT

This case study analyzed five different projects Target Corporation had to decide on capital spent for which project created the most value and the most growth for the company and its shareholders. By analyzing the financial statements and exhibits of each project, I was able to determine the positives and negatives of each of these alternatives. The alternatives were Gopher Place, Whalen Court, The Barn, Goldie’s Square, or Stadium Remodel.

1. Introduction 2. Analysis of current position 3. Analysis of new project 3.1 Methodologies and processes of Valuation 3.2 processes of Valuation 4. Conclusion

Expectations of the stakeholders and customer need to be in line with the project objectives and deliverables. During project initiation, it is critical that those expectations are outlined in approved baselines so performance can be measured throughout the project. With the utilization of established baselines, performance can be measured using earned value management and reported accordingly. This will also ensure that contractual requirements are being maintained, which is critical in today’s competitive environment. This will also assist in creating the scope, budget and schedule baselines so performance throughout the project can be measured to ensure performance is meeting everyone’s needs and expectations. This paper will outline the re-carpeting project and further establish viability verification, threshold establishment, overhead costs and management oversight. Finally, using Earned Value Management (EVM) can provide all key personnel a snapshot of where the project stands at any given point during the entire life cycle.

These two cases present the capital investment decisions under consideration by executives of a large chemicals firm in January 2001. The A case (case 20) presents a go/no-go project evaluation regarding improvements to a polypropylene production plant. The B case (case 21) reviews the same project but from one level higher, where the executive faces an either/or investment decision between two mutually exclusive projects. The objective of the two cases is to expose students to a wide range of capital budgeting issues: