Answer:
The BCWS is also known as Planned Value (PV).
So, in this way, <em>PV = 3.125.000</em>
Explanation:
With the data we can obtain the PV as follows:
First, let's calculate EV as EV = CV + AC.
EV = -500.000 + 4.000.000 = <em>3.500.000</em>
After this, we can calculate PV with this formula: SPI = EV/PV
PV = EV/SPI
PV = 3.500.000/1.12 = <em>3.125.000</em>
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<em>We can conclude, with these results, that the project actually is forward about the schedule but with an overcost about the budget. In other words, the project advance must be 41% but now is on 36% due to the negative variance on the costs (CV).</em>
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Answer:
c. $64 million
Explanation:
For computing the revenue recognized, first we have to determine the percentage which is shown below:
= Cost incurred in 2014 ÷ expenses incurred
= $48 million ÷ $120 million
= 40%
And, the contract price is $160 million
So, the revenue recognized would be
= Contract price × percentage
= $160 million × 40%
= $64 million
Answer:
No there was no contract, there was at best an agreement to agree (an agreement based on understanding that a future arrangement can be made).
Nina said she was still thinking about her son's proposal and had not decided yet, so there was no contract.
Oral contracts is a spoken agreement between two parties that may be legally binding.
Breach of oral contract can be hard to prove since it is not written down.
An oral agreement between family members is not enough to be considered a contract.
Explanation:
Answer:
d. The decision maker must only stick to completely rational, mathematical analysis while selecting an alternative.
Explanation:
It is most ideal for a decision maker to stick to completely rational way of selecting an alternative as this means that the decision maker will only make choices that will be of maximum benefits and low costs. Factors such as personal feelings, or sense of obligation do not interefere when a decision maker sticks to completely rational and mathematical analysis method of decision making.
Answer:
PV= $1,311.17
Explanation:
Giving the following information:
Future Value (FV)= $5,000
Number of periods (n)= 25 years
Interest rate (i)= 5.5% compounded annually
T<u>o calculate the present value (PV), we need to use the following formula:</u>
<u></u>
PV= FV / (1+i)^n
PV= 5,000 / 1.055^25
PV= $1,311.17
