Question: Review the decision tree for Project A. Download here. Task Fill in the ROCC at the appropriate decision points. These answers can be marked either

Review the decision tree for Project A. Download here. Task Fill in the ROCC at the appropriate decision points. These answers can be marked either on the decision tree document or on a separate submission. Then answer the following questions: 1. Is the project viable given the minimum ROCC at the high end of the market? Please explain. 2. Is there an intermediate point at which you would exit the project before final completion? Please explain. Project A Terminal Probability ROCC ROCC Target = 8% Sell Varld Property 1000000 $ 100,000.00 2 Variance Approved 60% $360,000.00 Sell Abated Site 1500000 2 Demo/Abate Site -240000 Try for Variance -100000 $8.4M High 70% $ 760,000.00 42% Land Purchase (CC) Develop Project -6500000 -800000 1 Variance Denied 40% 30% Low $7.4M $ (160,000.00) $ - 40% 18% 0% Don't Try Fill in the ROCC figures in the red outlined cells. Review the decision tree for Project A. Download here. Task Fill in the ROCC at the appropriate decision points. These answers can be marked either on the decision tree document or on a separate submission. Then answer the following questions: 1. Is the project viable given the minimum ROCC at the high end of the market? Please explain. 2. Is there an intermediate point at which you would exit the project before final completion? Please explain. Project A Terminal Probability ROCC ROCC Target = 8% Sell Varld Property 1000000 $ 100,000.00 2 Variance Approved 60% $360,000.00 Sell Abated Site 1500000 2 Demo/Abate Site -240000 Try for Variance -100000 $8.4M High 70% $ 760,000.00 42% Land Purchase (CC) Develop Project -6500000 -800000 1 Variance Denied 40% 30% Low $7.4M $ (160,000.00) $ - 40% 18% 0% Don't Try Fill in the ROCC figures in the red outlined cells
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
