What is physical life of project?

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: Does the Analysis Period Equal Project Lives?

A: Yes, the analysis period equals the project lives.

Q: What are the sources of risk associated with project development?

A: Variations in returns of an investment from its expected returns are called risk. The risk of an…

Q: Define construction in progress.

A:

Q: What is the project’s PI?

A: The PI index the profitability index of the project. The shows the profitability of the project…

Q: Differentiate between a project’s physical life and its economic life.

A: At the point when an organization purchases an asset it mulls over numerous things like the expense…

Q: The components of the conceptual framework ?

A:

Q: How Analysis Period Differs from Project Lives?

A: Analysis period is the time period which is considered by the evaluator while assessing different…

Q: What are the goals of a performance evaluation system?

A: Performance Evaluation System: Performance evaluation system is a system used to examine…

Q: what is the amount needed?

A: The given problem can be solved using the unitary method: When 20% is 2 tsp then; 100% is 2/20% = 10…

Q: The MARR used for a project’s acceptance or rejection is set relative to what cost?

A: MARR is a discount return which is the lowest rate of return that must be accepted in the project.

Q: Define the term Analysis Period Equals Project Lives?

A: The concept of analysis period equal to project lives is basically used in present worth analysis.

Q: in general, what is the required accounting treatment for research and development costs?

A: The research and development costs are the cost incurred to research for some new ideas and cost…

Q: Define Development costs.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: What is the project’s MIRR?

A: Rate of return is the expected result of any investment or project. It can be negative or positive.…

Q: What is a nonsimple project?

A: There are two types of projects, that is, simple and non simple. These projects are based on the…

Q: What are Sources of Funding?

A: The process that involves determining the fund requirement, identifying and selecting the optimum…

Q: What budget and timetable constraints will affect system development?

A: The question is based on the concept of constraints in development and Implementation of system…

Q: Describe the methods of determining the Project Risk?

A: Project risk is an uncertain event or circumstance that affects at any rate one objective of a task,…

Q: Differentiate between divisible and indivisible projects

A: Capital rationing is the process of limiting the projects that the company. It will reduces the…

Q: cost of equipment?

A: Purchase term 2/10, n/30 means 2% discount is available for payment within 10 days, the credit…

Q: Define net realization value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: What is the revenue project?

A: Revenue refers to the income generated by the company by performing certain operations or business…

Q: Why financial analysis is made for evaluation of a system? How is it useful in design?

A: Financial analysis is a process where monetary based transactions such as capital projects,…

Q: What is independent projects?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

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: Define the term Building scenarios?

A: It is vital for a company to assess its performance under various scenarios that could occur in the…

Q: How can we calculate the terminal project balance of the Project?

A: Firms always invest a huge amount in starting the project and from that project they generate…

Q: Distinguish between Service Projects and Revenue Projects?

A: Service Projects: Service projects are those projects which are carried out for the welfare of…

Q: Which is the most important breakeven in the analysis of a project?

A: Projects could be analyzed by using net present value (NPV) method. In this method, projects are…

Q: How are research and development expenses treated?

A: Research and development(R&D) expenses: These  are the expenses which an entity incurs in…

Q: Explain Initial Project Screening Methods?

A: Following are the Initial Project Screening Methods: The payback period alludes to what extent it…

Q: What is the process of economically evaluating a project's desirability?

A: Project desirability is the desirability that differentiates the project from other ordinary…

Q: Explain how the Analysis Period Equals Project Lives?

A: Answer: For the present worth analysis, the definition of analysis period equivalent to project…

Q: What is the project's NPV

A: The NPV is one of the technique in the capital budgeting which is used in the project evaluation.…

Q: Define the term Perpetual Service Life of a project?

A: Perpetual service life means that the project will continue in the same manner that would…

Q: How do we calculate the PWfor the projects?

A: Present Worth (PW) or Net Present Worth (NPW) is based on the time value of money concept. It is…

Q: What should be done to calculate accurately a project's true IRR,?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

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: Define the term Planning horizon?

A: Organization: Organization refers to the group of organized people with a particular purpose of…

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 are program services expenses?

A: Non-Profit Organization is legal entity formed to serve the welfare for the people & society. It…

Q: What is plan sponsor?

A: A plan sponsor is an employer or a designated employee or organization or a designated party that…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.