You are the project manager for a 10 megawatt solar power plant construction project. g) The land
Question:
You are the project manager for a 10 megawatt solar power plant construction project.
g) The land should be purchased before initiating the construction project. Clearly, you want to obtain the best deal from a seller with the best incentives from local municipalities. Explain your negotiation strategy. (10 marks) h) Suppose that there is a choice to make between three lands to purchase. Land-A purchase price is $150K. Land-B purchase price is $120K but there is a 30% chance that some extra administrative tasks at a cost of $40K will be needed. Land-C purchase price is $80K but there is a 70% chance that you need to construct a road with an estimated cost of $80K. Develop a decision tree to estimate the final costs for each of the lands. Which land you would recommend? (10 marks