The paper “ Project Management - Time Feasibility, Pricing the Risk, Return on Equity, the Markets Trends, Increase in the Price and Demand” is a good variant of assignment on finance & accounting. Pricing the risk in price feasibility can be executed in the ways stated, the first step is the provision of the technical definition of the project, this entails the required standards will the executed on the project. In addition, the maintenance cycles expected. The second step is calculating the direct costs, which are costs that can be assigned to a particular project.
These costs must be based on a recent public sector project to deliver the same projects, which include foreseeable efficiencies (Fight 50). Capital costs entail delivery of new services such as design, land, raw materials and development. Capital costs do not only refer to the above but also accounts for the labor, management and training costs these also include the legal, procurement, technical and also project management services. It is significant to include the cost of asset replacement. Maintenance cost these are costs for full project maintaining of assets needed to deliver a given output, this also includes the cost of equipment and tools, labor associated with maintenance of that particular maintenance project.
Maintenance is assumed consistent with the capital and the operating cost forecast. Operating cost also lies underestimation of direct cost. It is associated with day to day functioning of the service also the whole costs of the staff, which includes salaries and wages, benefits of employees, annual leave, insurance, and redundancy, and raw materials. Step three is detecting the indirect costs, this is the project's overhead costs which are the cost accounting, legal services, senior management efforts, communication and other resources required by the project.
A more appropriate method of allocation includes the ratio of project employees to institutional staff catering for personnel cost. Project costs to institutional costs for accounting costs. Lastly, the billing costs that are the number of project customers compared to the number of institutional costs Revenue identification as a way of pricing the risk, this is the total cost of service delivery but it should be paid by the revenues to be collected. A project can generate revenue from, users paying for the service, third parties being allowed to use the project and lastly use of assets to generate income The last step is the explanation of the assumptions in this stage, a detailed and clear explanation is given about the rates of inflation, depreciation, treatment of assets and also the government's Medium Term Expenditure Framework. Question 1bResidential development is whereby there is the installation of improvements either onsite or offsite, which are important to prepare the land for construction which can be erecting buildings and construction.
This development can be for commercial or private use. Residential investment entails buying or acquiring of already building or developed property it can be in cash form or through a mortgage, which also differs from whether the property is for commercial use. The residential investment gives a better return on equity. Because the investor is able to easily break through equity capital constraints in order to acquire more. On the other hand, if the return on the property invested is greater than the cost of the money invested in it then it makes the investor accumulates enough wealth.
Therefore, the investor has a significant magnification of returns.