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Question 2 Your company is constructing a project with an estimated cost of RM 4.4 million. The project has to be completed in 5 months

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Question 2 Your company is constructing a project with an estimated cost of RM 4.4 million. The project has to be completed in 5 months time. 4 major activities were identified under the work breakdown structure:- Activity A with the budgeted cost of RM 1,000,000 is scheduled to begin at the beginning of month I and finish at the end of month 4. Activity B with a budgeted cost of RM 800.000 is scheduled to begin at the start of month 1 and complete at the end of month 2. Activity C with a budgeted cost of RM 1,200,000 is scheduled to begin at the start of month 3 and finish at the end of month 5. Activity with a budgeted cost of RM 1,400,000 is scheduled to begin at the start of month 3 and finish at the end of month 5. At the end of month 4. Activity A is 90% completed, Activity B is 80% completed, Activity Cis 90% completed and Activity Dis 30%. The actual cost spent on the project is RM950,000 a) Explain the financial and progress status of the project at the end of month 42 (20 marks) b) Determine the estimated cost at completion and the estimated cost to complete the project. (10 marks) m What is the assumption used to determine the above estimate? Explain how the estimate can go wrong (10 marks) Question 2 Your company is constructing a project with an estimated cost of RM 4.4 million. The project has to be completed in 5 months time. 4 major activities were identified under the work breakdown structure:- Activity A with the budgeted cost of RM 1,000,000 is scheduled to begin at the beginning of month I and finish at the end of month 4. Activity B with a budgeted cost of RM 800.000 is scheduled to begin at the start of month 1 and complete at the end of month 2. Activity C with a budgeted cost of RM 1,200,000 is scheduled to begin at the start of month 3 and finish at the end of month 5. Activity with a budgeted cost of RM 1,400,000 is scheduled to begin at the start of month 3 and finish at the end of month 5. At the end of month 4. Activity A is 90% completed, Activity B is 80% completed, Activity Cis 90% completed and Activity Dis 30%. The actual cost spent on the project is RM950,000 a) Explain the financial and progress status of the project at the end of month 42 (20 marks) b) Determine the estimated cost at completion and the estimated cost to complete the project. (10 marks) m What is the assumption used to determine the above estimate? Explain how the estimate can go wrong (10 marks)

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