Home / Questions / In the context of software development projects, a programmanager was faced with the follo
In the context of software development projects, a programmanager was faced with the following choice last year: He had tooption of going with a vendor who proposed a bid which was partlybased on future integration costs that were beyond their control.Analysis suggested that total final cost for the program would comesomewhere between 100K and 250K, based on the program managers?past-experiences. He commissioned an internal study to determinewhether an in-house development effort (which would not be subjectto any uncertainty due to integration) would cost more than 165K,thinking that he would take his chances with the vendor if thein-house work would cost more than 165K. 1.Determine the manager?srisk tolerance based on the above information. Currently, the samemanager is facing a hardware purchase decision, which is againsubject to uncertainties because final hardware requirements aresubject to future outcomes of external influences beyond hiscontrol. As the company has no in-house capability to buildhardware, he solicited and received three bids, with the followingpossible cost outcomes: Bid Optimistic Cost (p=.05) Most likelycost (p=.5) Pessimistic cost (p=.95) A 95 125 175 B 100 110 190 C75 150 180 2.Based on the manager?s risk tolerance you calculatedin (1), determine which bid should he accept. Please explaincalculations in detail.
Dec 03 2019 Read more Less More
Which of the following causes the accounting equation not to balance? a. Increase assets; increase liabilities. b. Decrease assets; increase expenses. c. Increase asse...
Aug 24 2020Role Of Capital Structure In Sustainability Of Banking Industry In India: A Comparative Study Of Sbi And Icici Bank. • What is the setting for your project? • What are th...
May 03 2020Project progress overview Transformation from broad acre to mixed farming The overarching of this project is to identify the challenges and opportunities involved in th...
Dec 05 2019Raj, Ramesh and Rajesh are all making decisions about how to approach the team project. They have only one week to write a 75-page analysis of the government's suit agai...
Dec 07 2017Discuss Habitable plants if earth fails and how that planet is benifical
Feb 06 2020The unadjusted trial balance of Surf Suds Laundry at October 31, 2010, the end of the current fiscal year, is shown below. The data needed to determine year-end adjustm...
May 14 2020The following information relates to Aires Corporation for 20x8 and 20x7:Aires CorporationComparative Balance SheetsDecember 31, 20x8 and 20x7Assets 20x8 20x7...
Jan 11 2020Severance pay is given in which of the following situations?A. An employee quits.B. An employee retires.C. An employee is laid off.D. An employee is a high performer.
May 29 2020Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $50...
May 11 2020What problem associated with asymmetric information was central to Bernard Madoff’s success in cheating so many investors for so long?
May 22 2020Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.