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Cost planning starts with the proposal for the project, at which time project costs are estimated. For budgeting purposes, it is

Salsk061 [2.6K]

Answer:

Each question is answered separately with mentioning the question part first in bold letters following with the answer to that part of the question.

Explanation:

What are some of the ways that a project manager can take these budgeting plans and track and compare them to actual data?

The budget plan is the baseline by which the project's progress can be compared with it's actual results. It helps to determine the variance of the project. Moreover, as the project's work and cost can change in the future we need to re-baseline the project's budget in order to keep better track of the comparison data.

In what sense is some cost reporting not reflective of the actual work performed? How can a project manager remedy this situation?

This could be due to many reasons why cost reporting may differ from actual work such as lack of experience in estimating budgeted cost, uncertain events, fluctuations in prices due to economic instability etc.

The best way to resolve this is by consulting with some one who has more experience as a project manager when preparing the budget. Another way is to be prepared to make changes in the estimated budget plan to meet the market dynamics.

Why is monitoring and controlling the project cost important for the success of the project?

When the project's cost has been budgeted and prepared the main issue is to ensure that the actual work done is within the limit of the budgeted cost. If for example it is estimated that the project would incur $10,000 per month resulting in cost of $120,000 at the end of the year. After four months we notice that the project has so far incurred total cost of $60,000, this could be a problem as it has exceeded the estimated project cost. This would ultimately result in either project not being completed on time as the estimated cost has exceeded and no further budget is available or the project's cost would exceed the benefits it would provide in the near future. This is why monitoring and controlling the project cost important for the success of the project.

What are some key components to monitor the health of the project, as it relates to earned value?

The key components to monitor the health of the project are Cost Variance (Difference between what is planned to be spent and what is actually spent), Schedule Variance (Difference between what was planned to be done and what is actually done), Cost Performance Index (Ratio comparing how much you planned to spent and how much you actually spent), and Schedule Performance Index (Ratio comparing how much work you planned to do and how much work you actually did). They will help in estimating the project's current position whether it is operating better or worse than it is expected.

7 0

3 years ago

(Bond valuation) You are examining three bonds with a par value of $1 comma 000 (you receive $1 comma 000 at maturity) and

Anna71 [15]

Answer:

Bond A, 5 years to maturity, semiannual coupons, 8%

Bond B, 10 years to maturity, annual coupon, 8%

Bond C, 15 years to maturity, semiannual coupon, 8%

a) market rate 8% semiannual

Bonds A and C will be worth $1,000 (par value)

price of bond B:

effective interest rate = 1.04² - 1 = 8.16%
PV of face value = $1,000 / 1.04²⁰ = $456.39
PV of coupon payments = $80 x 6.66192 (PV ordinary annuity factor, 8.16%, 10 periods) = $532.95

market price = $989.34

b) price of bond A:

PV of face value = $1,000 / 1.025¹⁰ = $781.98

PV of coupon payments = $40 x 8.75206 (PV ordinary annuity factor, 2.5%, 10 periods) = $350.08

market price = $1,132.06

price of bond B:

effective interest rate = 1.025² - 1 = 5.0625%
PV of face value = $1,000 / 1.025²⁰ = $610.27
PV of coupon payments = $80 x 7.69817 (PV ordinary annuity factor, 5.0625%, 10 periods) = $615.85

market price = $1,226.12

price of bond C:

PV of face value = $1,000 / 1.025³⁰ = $476.74

PV of coupon payments = $40 x 20.93029 (PV ordinary annuity factor, 2.5%, 30 periods) = $837.21

market price = $1,313.95

c) price of bond A:

PV of face value = $1,000 / 1.075¹⁰ = $485.19

PV of coupon payments = $40 x 6.86408 (PV ordinary annuity factor, 7.5%, 10 periods) = $274.56

market price = $759.75

price of bond B:

effective interest rate = 1.075² - 1 = 15.5625%
PV of face value = $1,000 / 1.075²⁰ = $235.41
PV of coupon payments = $80 x 4.91292 (PV ordinary annuity factor, 15.5625%, 10 periods) = $393.03

market price = $628.44

price of bond C:

PV of face value = $1,000 / 1.075³⁰ = $114.22

PV of coupon payments = $40 x 11.81039 (PV ordinary annuity factor, 7.5%, 30 periods) = $472.42

market price = $586.64

d) If the market rate is lower than the coupon rate, then the bonds will sell at a premium. The longer the maturity date, the larger the variations in market price due to different interest rates. E.g. the 15 year bond is more affected than the 5 year bond.

7 0

3 years ago

Net income isâ ________.

Leni [432]

C. 'Net' anything is total gain or loss.

3 0

3 years ago

In a statistical study what is the difference between an individual and a variable?

djyliett [7]

An individual is a member of the population of interest. A variable is an aspect of an individual subject or object.

3 0

4 years ago

The GE "stop-light" evaluation method is a very objective approach because GE feels there are too many possible errors if it tri

blondinia [14]

Answer:

False

Explanation:

This method is a subjective approach, as the variables of Attractiveness and Strength cannot be measured quantitatively. These are measured by experts in the field, however, their subjective approach cannot be totally eliminated. Therefore, the GE "stop-light" approach is <u>subjective</u>, and possible errors ale always possible.

8 0

4 years ago

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