Question
Please help with the following questions Cutting Edge Sensors Ltd. has taken $2.5M worth of investor stock to start a 3 year project that is
Please help with the following questions
Cutting Edge Sensors Ltd. has taken $2.5M worth of investor stock to start a 3 year project that is estimated to earn $5M by the end of the project ($2M at end of year 2, and $3M at the end of year 3). The yearly costs involved are $500,000 for the length of the project.
Investors had the opportunity to invest in another project expected to earn 10% per year.
What is the ROI?
What is the NPV?
To complicate the situation, the CEO is considering the possibility of buying infrastructure that would make in-house manufacturing of component parts normally bought from suppliers. This would increase the initial cost required to fund the project to a total of $4M (from $2.5M). This would reduce ongoing yearly costs to $150,000 (from $500,000).
What is the updated ROI?
What is the updated NPV?
The project undertaken by Cutting Edge Sensors Ltd. Is progressing. Currently they have spent $750,000 of their approved $500,000 proportion of the total budget ($2.5M total budget for the 3 year long project). The estimates of how they are progressing suggests they are 20% complete of all tasks up to this point in the project (currently 18 months in).
What is the Rate of Performance (RP)?
What is the Planned Value (PV) for this project at this point (18 months) of the project?
What is the Earned Value (EV) after the reported period of work, at the rate they have progressed?
What is the Actual Cost (AC) after the reported period of work?
What is the Cost Variance (CV) for the Project?
What is the Schedule Variance (SV) for the Project?
What is the Cost Performance Index (CPI)?
What is the Schedule Performance Variance (SPI)?
What is the Estimate at Completion (EAC)?
What is the Estimate Time to Complete in months (whole months rounded up if needed)?
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