Essay About Expected Cost And Total Project Cost

Financial Plan Assignment
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Financial Plan Assignment
Material:
Equipment A: $ 15,000
Equipment B: $ 35,000
Material required for electrical hook-up (400 *25) : $10000
Controls 600*2: $ 1200
Required start-up material 3700*2.70 : $ 9990
Total Material $71190
Labor:
Company labor for installation (2*16*35): $ 1120
Contract labor: $ 7,500
Total Labor $ 8620
Overhead:
Engineering (71190*0.15): $10678.5
Inspection (8620*0.03): $258.6
General and Administrative (71190+8620)*0.05: $3990.5
Total overhead $ 14604.60
Total project cost = $94,737.60
a) Pexp = (Popt + 4 x Pmost + Ppess) / 6
Pexp = (0.24 + (4 x 0.30) + 0.62) / 6
Pexp = $0.34/lb
(b) Expected Amount
Pexp = (Popt + 4 x Pmost + Ppess) / 6
Pexp = (37 + (4 x 40) + 49) / 6 = 41 tons.
c) The expected cost for structural steel over the life of the project
$0.34* (41*2000) lbs.= 27880 lbs.
d) The expected cost for structural steel over the life of the project
Expected cost:
$10.17/lb. x 5,170 lbs. = $52,578.90
Most optimistic cost:
$0.24* (37*2000) lbs. =$ 17760
Most pessimistic cost:
$0.62*(49*2000) lbs. =$ 60760
The final estimated cost for the material is:
($17760 + (4 x $27880) + $60760)) / 6 = $31673