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In long-term project planning, this is wise to suppose that staff will be accessible for project work for less than 100 per cent of the total accessible time. What factors will decrease staff availability and what adjustments must be made for them?
Staff will be unavailable for project work because of:
a. Bank holidays
b. Leave
c. Training courses
d. Sickness
e. The Other non-working time, such as attendance at company meetings.
The common way of permitting for this is to schedule people for only four, quite than five, days’ work over the period of a project. For shorter-term planning, there holidays and training courses are identified about, slightly more than four days weekly may be planned for.
Your company's cost of capital is 12%. You are currently evaluating three projects that have the following cash flow streams: Project 0 1
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