A project has a budget of $300,000 and is expected to last 10 months, with the work
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- A project has a budget of $300,000 and is expected to last 10 months, with the work results and budget spread evenly across all months. The project just completed its 3rd month, the work is on schedule, and $65,000 has been spent. What is the cost variance? How efficient (in %) must work progress be to complete on time and within budget?
- The incoming cash flows for Projects A & B are given below. Each will require a $350,000 initial investment up front. Using a payback period method, do these projects appear worth it? Given an interest rate of k = 10% and using the NPV method, which project(s) appear worth it? Finally, if IRR is 13%, would you still do the project(s)? All values below are in thousands.
Related Book For
Construction accounting and financial management
ISBN: 978-0135017111
2nd Edition
Authors: Steven j. Peterson
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