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This book explains the ﬁnancial appraisal of capital budgeting projects. The coverage extends from the development of basic concepts, principles and techniques to the application of them in increasingly complex and real-world situations. Identiﬁcation and estimation (including forecasting) of cash ﬂows, project appraisal formulae and the application of net present value (NPV), internal rate of return (IRR) and other project evaluation criteria are illustrated with a variety of calculation examples.
Chapter 2 PROJECT SCOPE. Project scope is the description of what the project will produce. Starting at the beginning with project initiation, the project team builds the project information step by step. According to the PMBOK®.Guide, the processes related to Scope Management are
The steps are as follows:
1. 2. 3. 4. 5.
Great Idea Project Charter Scope Description Scope Management Plan Work Breakdown Structure
Once all of these steps have been completed, the team will have a solid description of the scope.
Chapter 1 introduces the concept of capital budgeting, and sets out the structure of the book.
The important points are:
Capital budgeting is the most significant financial activity of the firm.
Capital budgeting determines the core activities of the firm over a long term future.
Capital budgeting decisions must be made carefully and rationally.
After studying chapter 14, you should be able to: Define the “riskiness” of a capital investment project; understand how cash-flow riskiness for a particular period is measured, including the concepts of expected value, standard deviation, and coefficient of variation; describe methods for assessing total project risk, including a probability approach and a simulation approach.
This chapter begins with a general introduction to project risk and follows with the consideration of its specific measurement. Next, an investment project is examined with respect to its firm-portfolio risk – that is, the marginal risk of a project to the firm as a whole. Finally, the effect of managerial (real) options on project desirability is studied.
Suppose you are a rising star at work and the boss has given you your first assignment to head up
a project. Depending on the nature of the project and what kind of work you do, you might have to
engage in a variety of tasks that you haven't tackled before, such as assembling a team to
complete the project on time and on budget, mapping out a plan and monitoring your progress at
key steps along the way, using appropriate planning tools such as project management software
or wall charts, and keeping your team motivated and on target....
Project management is the discipline that relates all of those words that you thought of that apply to project.
This discipline cultivates the expertise to plan, monitor, track, and manage the people, the time, the budget,
and the quality of the work on projects.
Imagine that an important customer in your firm commissions you to complete a sophisticated worldwide market study that will form the basis of a global expansion strategy. Or that you are responsible for the development of the product which will determine your firm’s ability to go public. Or that you are in charge of handling the merger of your firm with another. Further imagine that in these situations you receive a strict budget and a precise schedule. You are, as such, involved in a project— and, moreover, you are involved in managing a project.
Corporate financial managers continually invest funds in assets, and these assets produce income and cash flows that the firm can then either reinvest in more assets or distribute to the owners
of the firm. Capital investment refers to the firm’s investment in assets, and these investments may be either short term or long term in nature. Capital budgeting decisions involve the long-term commitment
of a firm’s scarce resources in capital investments. When such a decision is made, the firm is committed to a current and possibly future outlay of funds....
Project management is a set of tools, techniques, and knowledge that,when applied, helps you produce better results for your project. Trying to manage a project without project management is like trying to play football without a game plan.
Chapter 19a: Question about PROFESSIONAL RESPONSIBILITY
1. You are a project manager working on a project to market a new product. The deliverables of the project have been established, and the project work has begun. A contract to deliver the deliverables has been signed. The customer who has signed the contract has telephoned you to request additional work to be done on the project. This work will affect the budget but not the schedule of the project. This project has a high priority with your company. What should you do next? a. Do what the customer asks you to do and...
Chapter 17b: Answer key about CONTRACTS AND PROCUREMENT
1. Answer: b A statement of work is the description of what the project is about and what will be delivered. The project plan is complete and contains the detailed work that the project will do, complete with task descriptions and schedule, cost, and scope baselines containing a real schedule and budget. An exception report describes items that are not as planned, and a Pareto analysis is a quality management tool used to prioritize defects into the most frequently occurring. 2.
Chapter 7 BUDGET. Every project has costs, including direct costs, indirect costs, sometimes capital cost, always expense cost. Cost management on a project is generally done partially by the project team and partially by people in other departments. In this chapter we discuss many aspects of project cost management.
This helpful guide offers explanations of everything needed to get started in project management including: how to initiate a project and lead the project team, how to structure the project and plan for resources, how to monitor and track the plan, and how to close out the project. Packed with practical advice, this book includes tips to increase success, reveals common pitfalls to avoid, and presents case studies to show and why project management actually works.
Chapter 12 EARNED VALUE.Earned Value is a tool which enables project managers to determine where the project stands in relation to the budget and the schedule, even on projects with hundreds or thousands of activities, some of which are on track at any given time, while others are either ahead of schedule or behind.
Working with friends is always a pleasure, but commenting on an outstanding product of
friends is a greater pleasure. I have known Professors Aman Khan and W. Bartley Hildreth
for many years. I now even occupy the same position at LSU that Professor Hildreth previously
occupied. Over those years, I worked with them on several projects and found a
great deal of joy in contributing with them to an improving literature of public budgeting
and financial management.
The intent of the Preliminary Design submittal is to provide a formal opportunity for WSDOT,
the Contractor, various design team disciplines, and other approved project stakeholders to
review the construction documents in order to ensure that: the design is progressing
appropriately and proceeding in the right direction; the plans reflect Contractor requirements for
construction; design features are coordinated; and there are no fatal flaws within a given
discipline or between disciplines.
Solution: Lead your team in a different way. Think of your project team differently from how you think
of your department. Reduce your role to that of monitor. Watch the budget and the schedule, and ensure
that your team comes through; be available to solve problems that your team wants you to solve. For
some projects, you may need to work on the same level as your team because of deadline pressures,
lack of people on your team, or unexpected problems and delays. But step in only if your team needs
you, not because you assume that’s always the best way to proceed.
A maintenance culture, which means that what is built is maintained,
does not yet exist in Latin America. There is no reason to expect social
funds to ensure maintenance better than any of the other ministries. If
this culture is instituted, then projects will be sustained, both by the
ministries and by the social funds.
Citizen participation is emphasized greatly to achieve sustainable out-
comes of projects. There is nothing like money to sustain a project.
Part 1.Duong basis information on the number and quality of production (quantity and quality) from the nursery and macadamia plantation is available different sizes, including financial indicators, social and environmental conditions and pests and diseases.
Part 2. The design of the enterprise budget and Macadamia gross margin analysis for a wide range of areas and macadamia plantation scale production system small family.