When a company is going to invest cash that they have on hand in a development, what discount rate should they use in life-cycle costing analysis?

Q: Qf#4 Cost estimation plays a vital role in the success of any project. Explain the different tools…

A: Cost estimation is predicted amount of the money that is to be spend on the project. It's evaluation…

Q: what are some practical moves a company can make when facing larger-than-desired cash deficits for…

A: Cash deficit- The Corporation is considered to be in cash deficit when its cash balance falls below…

Q: What discount rate should a corporation use in a life-cycle costing study when investing funds that…

A: This question deals with a corporation use in a life-cycle costing study when investing funds that…

Q: The significant feature of ‘unit price contract’ is that the price per unit. Although quantities may…

A: In a unit price contract, the contractor is relieved of the risk of estimating uncertain quantities…

Q: What criteria would you apply when making professional judgments regarding investments in…

A: Whenever an engineering project is undertaken, the decisions relating to the investments must be…

Q: If an investor invests her money in a project with a 10% annual return. What is her nominal rate  of…

A: Nominal rate of interest is the amount of money generated from an investment before taxes, inflation…

Q: Why do owners frequently call for alternative prices to be quoted with bids for construction work?

A: It Is quite common for project owners to ask contractors to provide alternative bids for work or…

Q: What are the three levels of accuracy recognized in estimating capital costs?

A: Different levels of cost of capital estimates offer key input for choices over the lifetime of…

Q: Interpret the objectives of life-cycle costing and discuss the importance of determining building’s…

A: Solution- Objective- The goal of life lifecycle costing would be to minimize life - cycle cost by…

Q: What are the components of work to which cost information are required by every estimator?

A: IntroductionCost estimation is the most important process of any project. The cost estimation is to…

Q: List three general reasons why actual costs may exceed estimated costs on a lump-sum contract.

A: The general reasons due to which the actual costs may exceed estimated costs on a lump-sum contract…

Q: On a unit-price contract, if a contractor includes a unitprice of $145.00 per meter for 765 meters…

A: Given data: Unit price is $145.00 per meter Length of pipe is 765 meters. Incorrect amount is…

Q: How can we calculate depreciation of any equipment?

A: Depreciation- It is defined as a technique that allows an organization to list its asset value over…

Q: A company has the opportunity to take over a redevelopment project in an industrial area of a city.…

A: Given:  There is no initial investment cost, C0 = 0. year  Net cash flow  1 500000 2 300000…

Q: What are the benefits of the forwarding the pricing change orders?

A: Forward pricing is defined as the estimated work cost which is yet to be carried out.

Q: C) How will the level of revenue be determined economically? Clarify this statement?

A: Brief concept- Revenue- It is the sum of money that any firm obtains after selling its products in…

Q: What are the Loss and Expense heads of claim?

A: The loss and expense is a claim in the construction contracts which is presented by the contractor…

Q: What is the Assurance program at the federal project?

A: The federal projects are compulsory allied to the assurance program.The assurance program helps in…

Q: risk reserve, a simulation or estimation

A: An estimate is made before commencement of a project.A contingency factor acts as a cushion to save…

Q: How can we find asset value after 'a' years in service ?

A: The reduction in the value of an asset after serving a period of time is called depreciation. To…

Q: Why does the contractor not want to make a commitment to unit -price amounts?

A: In Unit price amount contract, it is a commitment by the contractor to fix the rates of each and…

Q: Why is it often difficult for an estimator to prepare a cost breakdown with the bid?

A: (1) Resources constraints (2) Insufficient time available (3) adverse environmental conditions (4)…

Q: how much money should be included in the overall bid price

A: Unit price contract is contract based on quoted price. So, unit price will be fixed.

Q: Why Cost + Percentage Fee Contracts are not preferred by the owners

A: The construction contract is a legal agreement between owner and contractor, which has details about…

Q: A 10 million project was awarded to an engineer. His target profit was 15% of the awarded project.…

A: Let us assume the entire project will be completed in one year. Given data, Cost of the project, CP…

Q: Q4/ The table below shows the duration and direct costs for the activities of a construction…

A:

Q: Explain the significance of unit cost in the context of a task order pricing structure.

A: A pricing structure establishes and arranges the prices of your company's goods and services. A…

Q: Determine the cost

A: Productivity: - It is a measure of amount of goods and services produced to amount of input used to…

Q: What would be the result of failure to agree on change order pricing?

A: A change order is a work that has been removed or attached to the original contract of work, but…

Q: Long-term contracts?   Multiple Choice increase transaction costs. reduce incentives for…

A: There are different types of contracts which are used to finish a project. Some of them are on the…

Q: if an investor is doing the planning, a ___ helps predict the rate of return and helps in making…

A: IF A INVERSTOR DOING A PLAING

Q: An old building has a future life of 15 years. The rate of interest on capital is 7%. If the…

A: Given data- future life=15 yearsrate of interest i=7%coefficient of annual sinking fund S=0.43

Q: How much of an impact does a formal schedule have on the subcontractor's ability to make a profit?

A: A construction schedule is a timetable for each activity and event in a building project. The…

Q: What are the five main items of the cost of a project?

A: - Different categories of cost of a project are, 1- Direct cost  - It includes cost related to…

Q: PipIM an Imual naing for his company for the next ten years beginning one year from now. If money is…

A:

Q: Find the depreciation for the 1ª year using

A: This question has been taken from estimation, costing and evaluation.

Q: How can the unit price projects be created?

A: The job to ever be done is divided into separate sections of a unit price arrangement, typically…

Q: Contrast the effort of building a car and building a residential unit. Which one requires more…

A:

Q: During what period can a contractor withdraw the bid without penalty?

A: A contract is a legal bond between two or more two parties. It specifies the duties and…

Q: A construction manager just starting in private practice needs a van to carry crew and equipment.…

A:

Q: Explain why sunk costs are not considered in the analysis of investment alternatives.

A: solution  In the investment and business analysis sunk cost is refers to the cost that have already…

Q: What are the examples of unit price contracts?

A: The estimated quantities of items and unit prices on the hourly rates, rate per unit work volume…

Q: An example of variable cost O a. Administrative costs O b. License costs O c. Labour costs O d. All…

A: Ans D - All of the above   Since a variable cost is defined as cost that changes in proportion to…