A project has a PV at status of $55000 at the status date and a BAC of $180000 at the end of the project. the project schedule is 14 months and at the status date AC is equal to 121000 and EV has been calculated to be 31000. project sponsor wants to know what the VACdur forecast is in months if a new eac$ is used for revised funding? sponsor assuming the project will continue the way it is currently going.

A project has a PV at status of $55000 at the status date and a BAC of $180000 at the end of the project. the project schedule is 14 months and at the status date AC is equal to 121000 and EV has been calculated to be 31000. project sponsor wants to know what the VACdur forecast is in months if a new eac$ is used for revised funding? sponsor assuming the project will continue the way it is currently going.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

See similar textbooks

Similar questions

Please do not give solution in image formate thanku. 11-24 Using PERT, Ed Rose was able to determine that the expected project completion time for the construction of a pleasure yacht is 21 months and the project variance is 4. What is the probability that the project will be completed in 17 months or less? What is the probability that the project will be completed in 20 months or less? What is the probability that the project will be completed in 23 months or less? What is the probability that the project will be completed in 25 months or less?
A new construction project is planned to be completed within a year. However, the actual duration of the project may vary due to unforseen circumstances. Historical data suggest that the duration of similar projects is normally distributed with a mean of 12 months and a standard deviation of 3 months. What is the probability that this project will be completed with a delay of at least 3 months?
Limbo Technologies has embarked on another project that has an estimated completion time of 40 weeks and a standard deviation of 5 weeks. It is estimated that the project completion time is normally distributed. i)What is the probability of finishing the project in 38 weeks or less? ii)The due date for the project is set so that there is a 90% chance that it will finish by this date. What is the due duration? ACTIVITY PREDECESSOR NORMAL TIME (WEEKS) CRASH TIME (WEEKS) NORMAL COST ($) CRASH COST ($) A - 4 2 1000 1600 B - 6 3 3000 3500 C A 3 1 2500 3000 D A,B 6 5 1500 1850 E D 4 2 3500 4200 F C 4 3 2250 3000 G D 3 2 1900 2500 H F,G,E 2 1 400 500
The sensitivity of two parameters (P and n) for one project is evaluated by graphing the AW values versus percentage variation from the most likelyestimates. The curve for n has a slope very close to zero, while the P curve has a significant negative slope. One good conclusion from the graph is that:a. both PW and AW values are more sensitive to variations in P than n.b. the project should be rejected, since AW values vary with P and n.c. a better estimate of P needs to be made.d. the ROR is equally sensitive for both parameters.
Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project. Amounts are in millions of dollars. State of Nature Decision Alternative Strong Demand S1 Weak Demand S2 Small complex, d1 8 7 Medium complex, d2 14 5 Large complex, d3 20 -9 Suppose PDC is optimistic about the potential for the luxury high-rise condominium complex and that this optimism leads to an initial subjective probability assessment of 0.8 that demand will be strong (S1) and a corresponding probability of 0.2 that demand will be weak (S2). Assume the decision alternative to build the large condominium complex was found to be optimal using the expected value approach. Also, a sensitivity analysis was conducted for the payoffs associated with this decision alternative. It was found that the large complex remained optimal as long as the payoff for the strong demand was greater than or equal to $17.5 million and as long as the payoff for…
Matt Mona is in the process of purchasing a motel near a college town. Themotel costs $3,500,000. The lot costs $500,000. Furniture and furnishings cost $700,000 and should be recovered in seven years (seven-year MACRS property), while the cost of the motel building should be recovered in 39 years (39-year MACRS real property placed in service on January 1). The land will appreciate at an annual rate of 5% over the project period, but the building will have zero salvage value after 25 years. When the motel is full (100% capacity), it takes in (receipts) $6,000 per day for 365 days per year. The motel has fixed operating expenses, exclusive of depreciation, of $430,000 per year. The variable operating expenses are $220,000 at 100% capacity and vary directly with percent capacity down to $0 at 0% capacity. If the interest rate is 10% compounded annually, at what percentage capacity must this motel operate in order to break even? (Assume that Matt's tax rate is 30% and the project life is…
For this question, please use the standard normal distribution table, Table A2. It has been estimated that the mean time required to complete a project is 20 weeks and the variance of project completion time is 9 weeks. What is the probability that the project will be completed in 23 weeks?
Net Present Value Perform a financial analysis for a project using the Net Present Value method. Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $200,000 in Year 1 and $30,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $100,000 each year in Years 2, 3, and 4. (1) Use a 9 percent discount rate and round the discount factors to two decimal places. Calculate the NPV and the year in which payback occurs.(2) Explain in plain language what the NPV means in this context.
A company is considering either (1) purchasing equipment for use on a new project (purchase cost = $5,000; purchase variable cost = $50 per day) or (2) leasing this equipment from a vendor at a rate of $100 per day. An initial analysis determined that the “purchase” option break-even point is 100 days. Based on this analysis, the company should Lease the equipment if the expected project is expected to last more than 100 days Purchase the equipment if the expected project is expected to last less than 100 days Purchase the equipment if the expected project is expected to last more than 100 days No answer text provided.
a business owner is planning to strategies his company's growth, he can either buy , rent, or lease a new factory depending on how the business is doing. He was given the following payoff table based on whether the business is doing good or business is slow. Aletnative Business Doing Goood Business Slow Buy 90 -10 Rent 70 40 Lease 60 55 The probability of business doing good is 0.7 and the probability of slow business is 0.3. Using Lapace method, the strategy is: A. Do nothing B. Lease C. Rent D. Buy
1. Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project. Amounts are in millions of dollars.State of NatureDecision Alternative Strong Demand S1 Weak Demand S2Small complex, d1 8 7Medium complex, d2 15 3Large complex, d3 20 -82. Suppose PDC is optimistic about the potential for the luxury high-rise condominium complex and that this optimism leads to an initial subjective probability assessment of 0.83 that demand will be strong (S1) and a corresponding probability of 0.17 that demand will be weak (S2). Assume the decision alternative to build the large condominium complex was found to be optimal using the expected value approach. Also, a sensitivity analysis was conducted for the payoffs associated with this decision alternative. It was found that the large complex remained optimal as long as the payoff for the strong demand was greater than or equal to $17.25 million and as long as the payoff for the weak demand was greater than or equal…
Ellie Daniels has $200,000 and is considering three mutual funds for investment—a global fund, an index fund, and an Internet stock fund. During the first year of investment, Ellie estimates that there is a .70 probability that the market will go up and a .30 probability that the market will go down. Following are the returns on her $200,000 investment at the end of the year under each market condition: Market Conditions Fund Up Down Global $25,000 $ -8,000 Index 35,000 5,000 Internet 60,000 -35,000 At the end of the first year, Ellie will either reinvest the entire amount plus the return or sell and take the profit or loss. If she reinvests, she estimates that there is a .60 probability the market will go up and a .40 probability the market will go down. If Ellie reinvests in the global fund after it has gone up, her return on her initial $200,000 investment plus her $25,000 return after 1 year will be $45,000. If the market goes down, her loss will be $15,000. If she reinvests after…