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MAN-435 Project ManagementProject Management: Achieving Competitive Advantage,by Jeffrey K. Pinto, (UpperSaddle River, New Jersey: Pearson Prentice-Hall, 2007).ISBN-13:978-0-558-39543-8Written Assignment 4This assignment covers text chapter 8. The question is adapted from Discussion Questionsin the text. There is only one assignment question.Why is cost estimation such an important component of project planning? Discuss howit links together with the Work Breakdown Structure and the project schedule.(Objective 4.2)The cost estimation is what the client uses to decide to continue with a project. It determinesthe funds available for work schedules and assets available. Clearly defining a cost estimate,allows a better opportunity for a successful completion of a project. The better the costestimate the better the profit margin for the project organization. A key for a detailed costestimate is to break down the project by work package and deliverable. Estimating the costof each task similar to a bottom up approach.