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Homework: Calculating a Project Budget
For this homework, you will continue working on the WAG expansion project. The PM, project sponsor, and the Finance department have met and determined that 3 million US dollars is still the appropriate funding requirements to build the new plant in the UK over a 2-year time period. After meeting, the team determined the following breakdown for the allocation of costs:
1. The budget will be $1.5 million per year2. 20% is allocated to salaries each year3. 50% is allocated to construction, upfitting, and purchase of land per year4. 20% is allocated for equipment purchases per year5. 10% is allocated for contingency reserve per year
Your task is to use the budget template linked below to input your projected budget breakdown for year 1 and year 2. Using the tasks that you created in the project management schedule from Module 03 and the work breakdown from Module, fill in the sheet so that you can begin building the budget by high-level task group. After completing your budget, explain in a Word document why you chose the expense lines that you included and justify the totals for each of your major categories.
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