What is the expected cost for the material over the life

Reference no: EM13305580

(a) You are the project manager for a new high rise office building. You are working on estimating the exterior landscaping for the new development. The landscaping requires the use of a special landscape stone. Based on recent experience the most likely price for the material is $120.00/ton. However, the price for this stone is volatile, and the price fluctuates over time based on market conditions and material availability. The most optimistic price estimate is $80.00/ton, and the most pessimistic estimate is $180.00/ton. (Note there are 3 data points in for this estimate.)

What is the expected price of the material?

(b) In addition to price fluctuations, you are also uncertain of how much of the material will be required for the project. Scope changes and site conditions will affect the amount of material actually needed. The most likely amount required is 36 tons. However, as little as 28 tons, and as much as 56 tons might be required.
What is the expected amount of the material needed for the project?

(c) Using the estimates from (a) & (b), what is the expected cost for the material over the life of the project using the COMPLEX method?

Reference no: EM13305580

Questions Cloud

What is the cost of common equity for whitewall : If Whitewall is expected to increase its annual dividend by 2 percent per year into the foreseeable future and the current price of Whitewall's common shares is $11.66, what is the cost of common equity for Whitewall?

What is the implied annual interest rate inherent : Suppose the September CBT Treasury bond futures contract has a quoted price of 11.2-09. What is the implied annual interest rate inherent in this futures contract?

The food industry intentionally manipulates consumers : The food industry intentionally manipulates consumers by taking advantage of the fact that most consumers are ignorant of all of the ways that the food industry manufactures and processes its products.

What is the length of the spacecraft : A 20-m long spacecraft is passing by earth at 0.8c. What is the length of the spacecraft measured within the moving (spacecraft) referencee frame

What is the expected cost for the material over the life : Using the estimates from (a) & (b), what is the expected cost for the material over the life of the project using the COMPLEX method?

Calculate the re-circulating load in the secondary crusher : A two stage crushing operation feeds 0.6 m diameter ore into a primary crusher at a rate of 25mt/hr. 80% of the ore feeds through an 0.2m screen into a secondary crusher. 65% of the ore from the secondary crusher comes out of a 50mm screen.

How far horizontally off the edge does it hit the water : a student throws a rock with speed 20.0 m/s at 30 degrees off the edge of a cliff. how far horizontally off the edge does it hit the water

At what level of ebit eps be identical for plans i and ii : Blue Stripes Co. is comparing two different capital structures. Plan I would result in 9,000 shares of stock and $342,000 in debt. Plan II would result in 12,600 shares of stock and $205,200 in debt. The interest rate on the debt is 10 percent.

User Account

All Pages