Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5-Assume NYIT had completed an addition, in 1999, that cost $3,000,000 when the relevant cost index was 206. They now, when the latest cost index

image text in transcribed
5-Assume NYIT had completed an addition, in 1999, that cost $3,000,000 when the relevant cost index was 206. They now, when the latest cost index is 269, wish to build a similar addition which is 50% larger. For this scope, the parametric factor is 0.8. a- What cost estimate they should use based on the above? (10 points) b- What contingency/uncertainty factor should be added to the cost estimate for decision purposes (budget) based on the quality of this estimate? (10 points) Would you add slack to the estimated duration? If so, how much? (5 points) c- 6- Company historical information (reflecting personnel turnover) for a particular software design is as follows: Lines of Code 6,000 2,000 3,000 Hours 30,000 11,000 16,000 Lines of Code/Hour Project 1 Year 1990 1991 1992 You are to bid on a similar project in 1993. The unit cost ($/hour) is adjusted for inflation. Should you base your cost estimate on the average lines of code/hour if the number of lines of code estimated for the new project is 15,000? Explain. (15 points) 5-Assume NYIT had completed an addition, in 1999, that cost $3,000,000 when the relevant cost index was 206. They now, when the latest cost index is 269, wish to build a similar addition which is 50% larger. For this scope, the parametric factor is 0.8. a- What cost estimate they should use based on the above? (10 points) b- What contingency/uncertainty factor should be added to the cost estimate for decision purposes (budget) based on the quality of this estimate? (10 points) Would you add slack to the estimated duration? If so, how much? (5 points) c- 6- Company historical information (reflecting personnel turnover) for a particular software design is as follows: Lines of Code 6,000 2,000 3,000 Hours 30,000 11,000 16,000 Lines of Code/Hour Project 1 Year 1990 1991 1992 You are to bid on a similar project in 1993. The unit cost ($/hour) is adjusted for inflation. Should you base your cost estimate on the average lines of code/hour if the number of lines of code estimated for the new project is 15,000? Explain. (15 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Investments, Valuation and Management

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

8th edition

1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697

More Books

Students also viewed these Finance questions

Question

why is recrystalization used in phenacetin synthesis

Answered: 1 week ago

Question

4 agreements between partners in the same supply chain

Answered: 1 week ago