Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the project budget baseline for xyz is $3,500,000

The project budget baseline for XYZ is $3,500,000 with the following risks assessment: Risk Event Probability...

Free

80.2K

Verified Solution

Question

Finance

The project budget baseline for XYZ is $3,500,000 with thefollowing risks assessment: Risk Event Probability Impact ExpectedValue Parts delayed in Customs 40% $100,000 Strong labor trainingequates to quick assembly 60% ($50,000) Heat sink assembly requiresrework 85% $150,000 (source: Paul Martinsen, PMP)

3. Calculate the adjusted project budget baseline for XYZproject.

Answer & Explanation Solved by verified expert
4.0 Ratings (450 Votes)

Please see the table below. Please be guided by the second row to understand the mathematics. Figures in parenthesis, if any, mean negative values. All financials are in $.

Risk Event Probability Impact Expected Value
Pi Vi Pi x Vi
Parts delayed in Customs 40%         100,000                   40,000
Strong labor training equates to quick assembly 60%          (50,000)                 (30,000)
Heat sink assembly requires rework 85%         150,000                 127,500
Total                137,500

Hence,  the adjusted project budget baseline for XYZ project = Baseline budget + Adjustment required due to risk events = 3,500,000 + 137,500 = $  3,637,500
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

The project budget baseline for XYZ is $3,500,000 with thefollowing risks assessment: Risk Event Probability Impact ExpectedValue Parts delayed in Customs 40% $100,000 Strong labor trainingequates to quick assembly 60% ($50,000) Heat sink assembly requiresrework 85% $150,000 (source: Paul Martinsen, PMP)3. Calculate the adjusted project budget baseline for XYZproject.

Other questions asked by students

Q

Imagine that you are a reader of a newspaper that has a section that allows ‘letters...

Psychology
Q

An ex-employee of a company’s payable department was able to steal around $200K by filling fake...

General Management
Q

At the end of 2017, Payne Industries had a deferred tax asset account with a balance...

Accounting
Q

Two resistances R and R are made of different materials The temperature coefficient of the...

Physics
Q

Question 6 Find the equation of a circle whose center is at 1 2 and...

Geometry
Q

x uI X

Calculus
Q

72 y 2 N 2 3 DY 4 2 51 Which best represents the equation...

Algebra
Q

Stuart Books buys books and magazines directly from publishers and distributes...

Accounting
Q

E6-24(Algo) Computing Target Profit, Preparing Contribution Margin Income Statement, Computing Margin of Safety...

Accounting
Q

5 points Saved Nancy Drew is trying to reconcile her checkbook at the...

Accounting
Q

Length of operating cycle is the significant determinant of working capital needs of a business...

Finance
Q

please answer all the blanks Many companies vie a quaify control technique...

Accounting