Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Calculate the Risk for the Cost and the Value Score. Display the Cr (Cost Risk) and Vr (Value Risk) in the diagram below. Table 6.
Calculate the Risk for the Cost and the Value Score. Display the Cr (Cost Risk) and Vr (Value Risk) in the diagram below.
Table 6. VMM Scores for Two Target Projects Original Cost Risk-Adjusted Cost VMM Value Score Risk-Adjusted Score Case Study1 $7.3 million $9.1 million 84.0 72.3 Case Study2 $7.3 million $115 million 53.5 46.5 Figure I shows the results for the two project case studies as two scores: as a standard score and as a risk-adjusted score. The simplest way to interpret this figure is to find the case with the highest value relative to cost. In this case, as both project case studies have roughly the same total cost, Case Study I has a higher value as scored by the VMM framework. The arrow shows the impact of adjusting the values due to risk, where larger changes in the score show higher impacts due to risk
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started