Question: A PM is preparing a Cost Management Plan and looking at Funding options. The rates for Equity funding are 13%, Debt funding 8%, and Internal
A PM is preparing a Cost Management Plan and looking at Funding options. The rates for Equity funding are 13%, Debt funding 8%, and Internal funding is 6.2%. NPV is $1.2 Million and opportunity cost is $1.8 Million. What best action can the PM take?
A. Go with internal funding as it is cheapest at 6.2%
B. Conduct Alternative Analysis to look at multiple options C. Decide another project as it is more lucrative $1.8 Million D. Debt Funding is a better at 8% as no ownership is given out
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