PROJECT FINANCE AND BUDGET

PROJECT FINANCE AND BUDGET

You have been hired as a project management consultant to assist the Acme Company

in evaluating two different project proposals that they are considering.  Proposal

A calls for the construction of a new plant which will require three years to

complete and will have much greater capacity than the old plant.  Because the plant

will have to be built on the current site, the old plant will have to be razed.

Proposal B involves the renovation of this plant.  This renovation will require two

years to complete, but the plant can remain in operation in a reduced capacity

during this upgrade.  Once the renovation is complete revenue will be increased by

25% per year, however annual maintenance will be 50% higher that Proposal A.

What is the profit associated with the project carried out in Proposal A? Proposal

B?
When does payback occur on the project carried out in Proposal A? Proposal B?
What is the present value of revenue for the project carried out in Proposal A?

Proposal B? (In computing present value, do not discount the value for the first

year being examined.) (Assume i = 0.10)
What is the present value of expense for the project carried out in Proposal A?

Proposal B? (In computing present value, do not discount the value for the first

year being examined.) (Assume i = 0.10)
What is net present value for the project described in Proposal A? Proposal B? (In

computing present value, do not discount the value for the first year being

examined.) (Assume i = 0.10)
What is the internal rate of return for the project described in Proposal A?

Proposal B?
Which project would you recommend?  Why?  What are the merits?  What are the risks?

PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A GOOD DISCOUNT 🙂

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency

Order your essay today and save 10% with the discount code tCPCOVID10