Preview

Tm 701 Project Management Essay

Satisfactory Essays
Open Document
Open Document
322 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Tm 701 Project Management Essay
TCM 701 – Project Management
HW #1
1
| Year0 | Year1 | Year2 | Year3 | Year4 | Year5 | Year6 | | $(60,000.00) | | | | | | | Required | 20% | | | | | | | cash flows | | $3,000 | $15,000 | $25,000 | $30,000 | $20,000 | $15,000 | NPV | $(5,087.13) | | | | | | |
NPV=$(-60+3/1.2+15/1.2^2+25/1.2^3+30/1.2^4+20/1.2^5+15/1.2^6)*1,000=-$5,087.13

2a Criteria | Strong Support | Supports Business Strategy | Profit Potential | 10% of Sales from New Products | Competition | Ability to Manufacture | Weighted Total | Project 1 | 6.0 | 50.0 | 40.0 | 3.0 | 8.0 | 0.0 | 107.0 | Project 2 | 2.0 | 0.0 | 20.0 | 30.0 | 6.0 | 27.0 | 85.0 | Project 3 | 12.0 | 40.0 | 8.0 | 9.0 | 6.0 | 24.0 | 99.0 | Project 4 | 6.0 | 35.0 |

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Course Project B Acc 505

    • 477 Words
    • 2 Pages

    AC505 Part B Capital Budgeting problem Clark Paints Cost of new equipment $200,000 Expected life of equipment in years 5 Disposal value in 5 years $40,000 Life production - number of cans 5,500,000 Annual production or purchase needs 1,100,000 Initial training costs Number of workers needed 3 Annual hours to be worked per employee 2,000 Earnings per hour for employees $12 Annual health benefits per employee $7,500 Other annual benefits per employee-% of wages 18% Cost of raw materials per can $0.25 Other variable production costs per can $0.05 Costs to purchase cans - per can $0.45 Required rate of return 12% Tax rate 35% Make Purchase Annual cost of direct material: Need of 1,100,000 cans per year $275,000 0 Annual cost of direct labor for new employees: Wages 72,000 0 Health benefits 7,500 0 Other benefits 12,960 0 Total wages and benefits 92,460 Other variable production costs 55,000 Total annual production costs $422,460 0 Annual cost to purchase cans 495,000 Before Tax After Tax Item Amount Amount Annual cash savings $72,540 $0 Tax savings due to depreciation 32,000 $0 Total annual cash flow $58,351 0 1 2 3 4 5 200,000 141,649 83,298 24,947 0.43 58,351 3.43 years Accounting income as result of decreased costs Annual cash savings $72,540 Less Depreciation -32,000 Before tax income 40,540 Tax at 35% rate 14,189 After tax income $26,351 Before Tax After tax 12% PV Present Item Year Amount Tax % Amount Factor Value Cost of machine 0 $200,000 Cost of training 0 92,460…

    • 477 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    AC505 course project

    • 311 Words
    • 3 Pages

    ACCT505 Part B Capital Budgeting problem Clark Paints Data: Cost of new equipment $200,000 Expected life of equipment in years 5 Disposal value in 5 years $40,000 Life production - number of cans 5,500,000 Annual production or purchase needs 1,100,000 Initial training costs 0 Number of workers needed 3 Annual hours to be worked per employee 2,000 Earnings per hour for employees $12 Annual health benefits per employee $2,500 Other annual benefits per employee-% of wages 18% Cost of raw materials per can $0.25 Other variable production costs per can $0.05 Costs to purchase cans - per can $0.45 Required rate of return 12% Tax rate 35% Make Purchase Cost to produce Annual cost of direct material: Need of 1,100,000 cans per year $330,000 Annual cost of direct labor for new employees: Wages 72,000 Health benefits 7,500 Other benefits 12,960 Total wages and benefits 92,460 Other variable production costs Total annual production costs $422,460 Annual cost to purchase cans $495,000 Part 1 Cash flows over the life of the project Before Tax After Tax Item Amount Amount Annual cash savings $72,540 0.65 $47,151 Tax savings due to depreciation 32,000 0.35 $11,200 Total annual cash flow $58,351 Part 2 Payback Period 200,000/58,351 3.4 Years…

    • 311 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    a. Unforeseen obstacles. The probability of unforeseen obstacles causing a negative impact to this project is rated at a moderate risk. Due to inability to determine the severity of the impact ATT impact could range from no impact to a show stopping impact. Each occurrence will be evaluated and solved at the lowest possible level. Each occurrence has the possibility to negatively impact the overall success of this project.…

    • 2438 Words
    • 10 Pages
    Better Essays
  • Better Essays

    The financial assistant received the important assignment by memorandum from the CEO. The memorandum stated that the company is considering the introduction of a new product (Keown, Martin, Perry, & Scott, 2005). Caradonia is currently at a 34% marginal tax bracket with a 15% required rate of return or cost of capital (Keown, Martin, Perry, & Scott, 2005). The new project is estimated to last five years and then be terminated because of being a fad project (Keown, Martin, Perry, & Scott, 2005). The financial assistant must analyze two mutually exclusive projects. Each project has an 11% rate of return and a life span of five years (Keown, Martin, Perry, & Scott, 2005). The following table (table one) shows the expected cash flows for each project.…

    • 1388 Words
    • 6 Pages
    Better Essays
  • Good Essays

    * To explain conditions that can lead to blood vessel length changes in the body.…

    • 1736 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Nature’s Peace Community has contracted us to provide project management for a playground and picnic area for the local neighborhood. The goal is to design and build a playground and picnic area for the neighborhood using HOA fees that the neighborhood have agreed to spend no more than a total of $100,000.00 for the community to enjoy. The lot is one half acre of cleared land that is flat and in the center of the neighborhood. The Homeowner’s Association would like to have 4-6 picnic tables and a large playground on rubber mulch with a separate area for swing sets meant for young children and adults.…

    • 1798 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Project Statement Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Sales | | 950,000 | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | Direct Cost55% of sales(Sales * 55% = DC) | | 522,500 | 825,000 | 825,000 | 825,000 | 825,000 | 825,000 | 825,000 | 825,000 | Indirect Incremental Costs | | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 |…

    • 474 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Week four’s focus on the project execution process was beneficial. I was not as familiar with the procurement management process as I am with quality, risk, and communication management. This week I was most comfortable with communication management and the tools and techniques for distributing formal communication. Communication management is something I have to do daily to ensure my department has the information necessary to meet goals, which is similar for the information required of a project team. I also felt comfortable with the risk management plan and recently have been participating in a project to review all process and procedures of our service teams. The focus of this project is to identify a standard process but also identify the risks of…

    • 755 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Hrm/531 Week 3 Quiz

    • 1150 Words
    • 5 Pages

    Calculating combinations of different projects will give Cynthia a better idea in which projects to invest in. NPV also provides proper rule for choosing mutually exclusive projects…

    • 1150 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Adams, S., Barran, S. (2010). Development and testing of evidence based practice questionnaire for school nurses. Journal of Nursing Measurement, 18(1), 35-40.…

    • 1092 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Completing the “Achieving Project Goals Simulation” changed my perception as well as helped me understand exactly what project management and how important it is to execute all the areas of project management effectively. By reviewing this simulation one can realize how project management is very helpful in everyday life and can also change one’s point of view on project management. There are three crucial elements to follow in project management, these are time, scope and cost and are known as the “Triple Constraint” or “Triple Constraint triangle (Kerzner, 2006).…

    • 873 Words
    • 4 Pages
    Good Essays
  • Good Essays

    2. Use the operating projections to compute a net present value (NPV) for each project. Which project…

    • 787 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    The goal of your first major writing project is to connect your experience to an abstract idea or concept. The idea or concept you work with can be one that has developed out of your shorter writing assignments and readings for Sequence 1, but it can also be something new. In this project, you are free to incorporate the stories you developed from those earlier short assignments. Of course, if you use material from any earlier assignment, you will need to revise and reshape it so that it effectively communicates your idea. Your final draft of this project will be 4 to 6 pages.…

    • 784 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    The Bride and Groom have been dating for a while and have decided to get married. The couple will commit their love and devotion in a legal ceremony with wedding vows. They have informed their parents and have agreed to a reception in a hall in 3 months time.…

    • 1014 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Discuss the process of defining project scope in more detail as a project progresses, going from information in a project charter to a project scope statement, WBS, and WBS dictionary.…

    • 1086 Words
    • 5 Pages
    Good Essays