ABC Co. is considering to build, buy, or outsource a project based on the following probabilities and
A. no modifications: p=.6, $400,000
B. slight modifications: p=.4, $450,000.
A. Complex, p=.4, $550,000
B. Simple, p =.6,
Efforts of a 4 person project is originally estimated at 20 person-months. However, after 2
months only 30% completed.
1. Compute the remaining efforts in person-months.
Let T = total revised efforts
Efforts consumed: 4 p x 2 m = 8 pm
8 pm = .30 x T
T = 2
A project with an initial cost of $40,000 (Year 0) with a life of 5 years is under
consideration. The annual benefits and costs at end of Year 1 to end Year 5 are expected
at $30,000 and $10,000 respectively. The discount rates at 6% for end of year 1 to
Execise 1Given the following information for a one-year project, answer the following questions. Recall
that PV is the planned value, EV is the earned value, AC is the actual cost, and BAC is the
budget at completion.