Q: Explain the Service Projects versus Revenue Projects?
A: The project is the collaborative effort initiated to achieve a certain objective within a certain…
Q: What will be the Effective Cost of Refinancing?
A: The term refinancing is related to mortgage refinancing, is a system that assists mortgage holders…
Q: b. What is the expected project completion time? c. Which are the critical activities?
A: a. Please refer with the Gantt chart below. b. Expected project completion time = 8 weeks c.…
Q: Does the Analysis Period Equal Project Lives?
A: Yes, the analysis period equals the project lives.
Q: Provide an example of a “good” externality, that is, one that increases a project’strue NPV.
A: The question is based on the concept of externality in project management. Externality is define as…
Q: Sunk costs should always be included when considering the cost of an activity. True or false, and…
A: Sunk cost are those cost which are already incurred by the business , But business cannot recovered…
Q: analysis? What are identified as possible risks associated with cost
A: Definition: A technique for calculating the costs related to a business prospect or proposal, as…
Q: What does the equipment replacement investment decision involve?
A: Equipment replacement investment decision is an important form of capital budgeting decisions. In…
Q: What is the process of allocating the cost of natural resources to expense as they are used?
A: Natural resources usually include oil reserves, coal deposits, and mineral deposits. The natural…
Q: Is the IRR measure also used to compare projects with unequal lives?
A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…
Q: What factors verify that the project is marginally acceptable?
A: Capital budgeting decisions are generally taken for long-term purposes that are irrevocable.…
Q: Describe the following terms: (a) residual value, (b) guaranteed residual value, and (c) initial…
A: (a) Residual value: It is the projected ending value of an asset after its useful life or lease…
Q: What is the economic rationale for the cost approach? Under what conditions would the cost approach…
A: Answer: Economic rationale for cost approach: The cost approach means that the person who is…
Q: Explain any one pros and cons of historical cost.
A: Historical cost is one of the four basic accounting principles. This method is used under Generally…
Q: What are the technique of project appraisal
A: Step 1: Techniques of the project appraisal are: Profitability index Payback period NPV IRR
Q: For the reader's advantage, provide a cost-benefit analysis of the project. How can the value of a…
A: An analysis is a systematic procedure used by businesses to determine which decisions to make and…
Q: The term stands for technical, economic, legal, operational and schedules feasibility. Discuss these…
A:
Q: How does the Analysis Period Differ from Project Lives?
A: In capital budgeting, the decisions are made to select the best alternative among various available…
Q: Distinguish between goal weights and historical weights in terms of how they are used to compute the…
A: Here Is The Answer:
Q: What is meant by the term contribution margin per unit of scarce resource?
A: Decision involving limited resources: Firms typically have resources limited in supply. For…
Q: What is residual value? Support your answer with an example
A: Residual value is also called as salvage value
Q: What is interpretation of the usefulness of the contribution margin concept?
A: Contribution margin The additional profit gained for each unit sold is calculated by subtracting the…
Q: Determine whether an investment is visible, which factors should be considered?
A: In terms of finance, the term feasibility of a project means to check if the project is economically…
Q: The costs most relevant to be used in decision making are: a. sunk costs O b. current costs O c.…
A: Cost: It implies to the expense that is incurred on the manufacturing of a product or rendering…
Q: In which situation are the project lives unequal?
A: Answer: A business will face a situation where multiple capital projects display a positive net…
Q: How can we calculate the Total Present Cost for the Base Case and Alternative?
A: The question is based on the concept of calculation of cost benefit analysis of base case and…
Q: Why base measurement on historical costs?
A: Historical cost: Historical cost explains that assets and liabilities appear in the financial…
Q: The cost of underwriting is sometimes assessed in terms of the costs of an equivalent PUT option.…
A: Underwriting costs: Means in respect of any underwriting agreement with broker,dealer or other…
Q: What is the Terminal project balance?
A: Project balance is the amount of money that is remaining in the project. Suppose a project is going…
Q: Why is an incremental analysis necessary when conducting a rate of return analysis for cost…
A: Incremental analysis considers only the relevant cash flows and it does not consider the…
Q: Label each of the following statements as either true (“T”) or false (“F”). A sunk cost will change…
A: Sunk cost: It can be defined as an expense that has already been paid for and cannot be recovered in…
Q: How can we use the PW criterion to compare the alternatives to minimize expenditures?
A: The full form of PW is present worth. Present worth is known as the present value of the investment…
Q: When does a project deny the merit consideration?
A: Project is assessed on the basis of various important considerations such as profitability, social…
Q: be considered
A: The phrase "mixed costs" in accounting refers to costs and expenses that include two components:…
Q: Write the equation for the Contribution margin?
A: Cost volume profit analysis: CVP analysis established the relation between cost, volume, and profit…
Q: What does the Contribution margin equation express?
A: Break Even Point: Break Even Point is defined as the level where there is no profit…
Q: Define the following terms: incremental cost, opportunity cost, and sunk cost.
A: Incremental Analysis: Incremental analysis refers to the analysis of differential revenue that could…
Q: Calculate the total relevant cost. Do you agree with the president's conclusion?
A: Note: Allocated facility level cost is a fixed cost; hence it is not taken into consideration.
Q: What is the equation to find Contribution Margin?
A: Contribution margin: Contribution margin refers to the process or theory that is used to judge the…
Q: How useful is cost–benefit analysis?
A: A cost-benefit analysis, commonly known as CBA, is the process of comparing the various projects and…
Q: What are the Project Cost Elements?
A: The deliverables such as products or services that a project is intended to create defines the work…
Q: Over what period of time should compensation cost be allocated?
A: As per GAAP, the compensation cost must be recognized over the service period of an employee.For…
Q: Identify and explain the various types of project cost estimates.
A: Project cost estimates are done so that the prediction about the quantity, cost, and price of the…
Q: what is the cost of a project proposal and how is it structure to meet its goals
A: A cost of a project refers to the sum total of all expenditure to be incurred by an organization for…
Q: Define cost of natural resources.
A: Timber, Mineral deposits, oil reserves, and other various natural resources are considered assets…
Q: Describe the various considerations in choosing the means of financing a project.
A: Financing is an act or process of performing all those activities that would help a company in…
Q: Describe the key steps taken in performing benefit-cost analysis for a typical public project?
A: A project is a pre-determined set of activities with a proper start to a proper end. There are…
The MARR used for a project’s acceptance or rejection is set relative to what cost?
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- Explain what a sunk cost is, what an opportunity cost is, and how each cost should be handled when doing project analysis. Give an example of each type of cost.Why sunk cost should not be considered when evaluating a project?What are the problems in using the Internal Rate of Return method when making decisions on which project/s to undertake?
- What is the criteria to accept a project based on the net present value and the internal rate of return?In order to find a the cost of a novel construction project; Definitive cost estimate is required. True or false?Why is the original cost estimate corrected based on buyout data? What three types of project costs present the greatest risk to the project manager? What are project labor curves used for?