Identify 10 major risks in the project, and provide TWO mitigation measures for each risk. Background (for
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Background (for Questions 1-5) A proposal based on cost-benefit analysis has been made to retrofit an old hospital in a medium-sized town in a developing country. The basic data are provided below. Retrofit period: 1 year Discount rate: 4% Costs: Retrofit Budget: Preliminaries Roof Windows Doors Useful life of facility: 10 years after retrofit Corporate tax: Exempted Mechanical, Electrical, and Plumbing Interior furnishings Wall, floor & ceiling finishes External works Interest during retrofit Fees and permits Organization overhead, etc Total retrofit cost Funding: Equity Debt (@5% interest over 10 years) $(000) 400 1,200 600 300 4,500 400 1,200 400 500 300 200 10,000 3,000 7,000 Operations and maintenance: $400,000 for first year, and rising by 2% each year. Impact on surrounding environment: Minimal Benefits: A survey shows an average willingness to pay (WTP) of $10 per visit for improved facilities (e.g. beds, indoor air quality, etc) over the next 10 years. This amount is purely for improved facilities and excludes doctor fees, meals, etc. Energy savings of $10,000 per year over the next 10 years. Water savings by harvesting rainwater, at $5,000 per year over the next 10 years. Transport savings by not having to travel to another town for medical treatment. The generalized travel cost is $20 per round trip, and it is estimated that 2,000 patients will make the trip each year if the hospital is not upgraded. .../3 Background (for Questions 1-5) A proposal based on cost-benefit analysis has been made to retrofit an old hospital in a medium-sized town in a developing country. The basic data are provided below. Retrofit period: 1 year Discount rate: 4% Costs: Retrofit Budget: Preliminaries Roof Windows Doors Useful life of facility: 10 years after retrofit Corporate tax: Exempted Mechanical, Electrical, and Plumbing Interior furnishings Wall, floor & ceiling finishes External works Interest during retrofit Fees and permits Organization overhead, etc Total retrofit cost Funding: Equity Debt (@5% interest over 10 years) $(000) 400 1,200 600 300 4,500 400 1,200 400 500 300 200 10,000 3,000 7,000 Operations and maintenance: $400,000 for first year, and rising by 2% each year. Impact on surrounding environment: Minimal Benefits: A survey shows an average willingness to pay (WTP) of $10 per visit for improved facilities (e.g. beds, indoor air quality, etc) over the next 10 years. This amount is purely for improved facilities and excludes doctor fees, meals, etc. Energy savings of $10,000 per year over the next 10 years. Water savings by harvesting rainwater, at $5,000 per year over the next 10 years. Transport savings by not having to travel to another town for medical treatment. The generalized travel cost is $20 per round trip, and it is estimated that 2,000 patients will make the trip each year if the hospital is not upgraded. .../3
Expert Answer:
Answer rating: 100% (QA)
Risk 1 Cost overruns during retrofit Mitigation Measures 1 Conduct a thorough feasibility study and engage experienced contractors to accurately estimate the retrofit costs 2 Implement a contingency b... View the full answer
Related Book For
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
Posted Date:
Students also viewed these finance questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
In a plant producing multiple products, would absorption costing overcost or undercost the more complex products? Why?
-
Using the method of joints, determine the force in each member of the truss shown. State whether each member is in tension or compression. 375 th 500 Ib 6 ft 84 ft
-
What is the minimum number of arbitrarily chosen parallel planes in which the balancing mass/ masses may be placed for complete dynamic balance of a system of unbalanced revolving masses in different...
-
A simple random sample of 17 business majors from a certain university had a mean GPA of 2.81 with a standard deviation of 0.27. A simple random sample of 23 psychology majors was selected from the...
-
McKnight Exercise Equipment, Inc., reported the following financial statements for 2012: Requirement 1. Compute the amount of McKnight Exercises acquisition of plant assets. McKnight Exercise sold no...
-
Write a brief sketch, or descriptive paragraph, of Sylvia, Mrs. Tilley, or the stranger. Use at least one interrogative sentence and one exclamatory sentence in your paragraph.
-
The manager of a trendy downtown caf in Columbus, Ohio, collects weekly data on the number of customers it serves. A portion of the data is shown in the accompanying table. a. Use the simple...
-
At what separation will two electrons each experience a force of magnitude 3.45x10-23 N? Give your answer in mm. (e = 1.602x10-19 C, k = 1/(4TE) = 8.99x10 Nm/C)
-
Dr Mo started his own medical practice at the end of 2020. At the end of his second year in business he thinks it prudent to compare his 2021 and 2022 financial results to reassess if it's better for...
-
a. If my car needs $1,200 in repairs today, do I have enough to cover the cost? b. If my job frequently requires me to work late or on weekends, is it worth it to pay additional money for premium...
-
In the diagram shown the tension in Rope 1 is 678.5 N. Angle A is 46.4 degrees, angle B is 32.4 degrees. What is the tension in Rope 2 and the weight of the mass? The tension in Rope 2 is? The weight...
-
If you write a call option you: a) may exercise the option if the stock price rises. b) may be forced to sell the underlying stock for the exercise price. c) hope the stock price rises. d) have the...
-
What is the output of the following code? try: print("1") raise ValueError("Yikes") print("2") except TypeError: print("3") except ValueError: print("4") except: print("5"). print("6")
-
Identify and sketch the surface with the given vector equation: (i) r(u, v) = (v, cos (u), sin (u)), 0u 2, 0v2
-
Find the market equilibrium point for the following demand and supply functions. Demand: 2p = - q + 56 Supply: 3p - q = 34
-
Sound control activities dictate that defective merchandise returned by customers should be presented initially to: a. The receiving department. b. The sales manager. c. The accounts receivable...
-
Which of the following situations increases the risk of fraud due to lapping? a. The sales manager can approve credit limits for customers. b. The accounts receivable clerk also has responsibilities...
-
What influences the auditors assessment of tolerable misstatement?
-
What is the purpose of calculating inventory turnover? What is the relationship between inventory turnover and average days in inventory?
-
When should inventory be reported at a value other than cost?
-
From the data in question 5.5, what is the cost of the ending inventory under LIFO? LO5 (a) $113 000. (b) $108 000. (c) $99 000. (d) $100 000.
Study smarter with the SolutionInn App