Business Finance Homework Help

This assignment consists of 2 parts: questions about budget
estimation and developing a budget.

Part 1 Questions (10
points)

Provide responses to the following questions

1. You
are providing a review of contractor bids for a component of your
upcoming project. What can be done to determine whether or
not a vendor’s bid is reasonable?

2.
Describe the conditions for which parametric,
analogous and bottom up estimation techniques work best, and
provide 2 examples in support of each method.

3. Why
is a cost management plan important? How does the plan
benefit the project manager?

Part 2 Budget Estimating (30
points)

Using the same scenario from the previous unit on scheduling,
create a time-phased budget for the following project.
Prepare a figure like Exhibit 10.9, CPT 4e, that illustrates the
daily and cumulative costs for the resource-leveled project.

Assume the following hourly rates:

Alcides $45 / hr.

Joan $50 / hr.

Activity ID	Activity	Immediate Predecessor	Duration in days	Resource	Work Hours per Day
A	Evaluate freezers		2	Alcides	6
B	Chart temperatures		6	Joan	4
C	Review service record		2	Alcides
D	Consult with HVAC engineer	A, B, C	3	Alcides
E	Develop construction plan	D	10	Joan
F	Complete IC assignment	E	2	Alcides
G	Complete ROI analysis	E	5	Joan
H	Conduct regulatory review	E	4	Joan
I	Obtain construction approval	F, G, H	2	Alcides

Part 3 Budget Estimating
(50 points)

You are the project manager for a process improvement project for
Company XYZ. Prepare a figure like Exhibit 10.9
that illustrates the weekly and cumulative costs for the
resource-leveled project.

Hint: To accomplish this exercise, you’ll need to create a
project schedule in MS Excel (or by hand), create resource
assignments, assign costs to each resource, and assign the
resources to each task. Some resource leveling will be
required.

In this project, you have 3 employees: Ann, Becky and
Clive. Each person is limited to the amount of time
allocated to your project. Ann and Becky are available 30
hours/week; Clive is available 20 hours/week. There hourly
rates are: Ann: $60/hour; Becky: $35/hour; and Clive: $50/hour.

WBS	Activity	Immediate Predecessor	Estimated Duration in weeks	Resource
1	Process Improvement Project
1.1	Operational definition
1.1.1	Research literature		3	Becky
1.1.2	Identify and define terms	1.1.1	1	Ann
1.1.3	Obtain approval of definition	1.1.2	2	Clive
1.2	Target Selection
1.2.1	Solicit partners for pilot		2	Ann
1.2.2	Hold brainstorming meeting	1.2.1	2	Becky
1.2.3	Identify characteristics of targets	1.2.2, 1.3.1	1	Ann
1.2.4	Obtain approval of partners	1.2.3, 1.1.2, 1.3.4	1	Clive
1.3	Question set
1.3.1	Identify process group members		2	Clive
1.3.2	Develop question set	1.2.3	4	Ann
1.3.3	Prototype and validate question set	1.3.2	3	Becky
1.3.4	Add partners	1.3.1, 1.2.1	3	Becky
1.4	Pilot process
1.4.1	Schedule with target audience	1.2.4	2	Becky
1.4.2	Conduct beta test	1.3.4, 1.2.4	2	Clive
1.4.3	Process feedback from target audience	1.4.2	2	Ann
1.4.4	Conduct pilot	1.4.3	2	Clive
1.4.5	Analyze results	1.4.4	2	Clive

Mechanics (10 points)

Part 1 responses should be presented in a
question-response format. Use Arial font with 11 point.
There is no word limit.

Your Instructor will use Turn-it-in to ensure your paper is
authentic work. To avoid plagiarism, see the course
home page for more information and use the Purdue Online Writing
Lab to learn how to paraphrase, summarize and cite the references
you use in all academic writing assignments.

Parts 2 and 3 Use MS Excel (MS Project is not acceptable)
to create the budget estimate and present it similar to Exhibit
10.9. Show intermediate steps (schedule, resource schedule
assignments, resource-leveled schedule and any other elements
needed to create the time-phased budget estimate.

It is expected that each part of this assignment have excellent
mechanics (presentation, grammar and spelling) and exhibit the
quality of work capable of a group of graduate students and
working professionals. All sections of the document submitted
must be readable at 100% magnification.

Your Instructor will use Turn-it-in to ensure your paper is
authentic work. To avoid plagiarism, see the course
home page for more information and use the Purdue Online Writing
Lab to learn how to paraphrase, summarize and cite the references
you use in all academic writing assignments.