Project Risk, Payback Period And Risk Analysis

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was based on estimation, cost control, contracts and procurement. This class was very important for me as I got to know about gantt charts, logic diagram, price of estimate, Project Risk, Payback Period and risk analysis. Gantt chart is a graphic display of the output on a time scale. It also shows the amount of work done or production completed in certain periods of time in relation to the amount planned for those periods. I also came to know that Senior management must create a corporate culture that supports project management and demonstrates faith in the methodology. If this is done successfully, then project risk can be prevented. I also understand the importance of payback period. payback period is the exact length of time needed for …show more content…

If the cash inflow of the first investment has a probability of occurrence of 96% and that of the second investment is 73%, then risk analysis would indicate that the first investment is better. Risk analysis refers to the chance that the selection of this project will prove to be unacceptable. In capital budgeting, risk analysis is almost entirely based upon how well we can predict cash inflows since the initial investment is usually known with some degree of …show more content…

Everybody enthusiastically suggested different project. It was very heard for all of us to select the particular project but then I came up with idea that everyone shall choose 2 project names and first will get 5 points and second one will get less points. Through this way we selected the project with majority of votes. I was glad we selected the Solar system project cause we already put the idea of solar roofs in previous mini project and now we could build up the entire housings plan. This project can cover more than 20 solar based houses and recreational clubs. The major feature of this project was that the houses are independent of conventional electricity as they have electricity generated by using solar roofs moreover they have a backup source which can be used to deliver solar energy to other cities in emergency. Recreational centers and shopping centers are other associated features of our project. Unlike previous project this major project does include capital expenditure request. The purpose of this Capital Expenditure Request (CER) is to request funding approval for the construction of the project. I started on working of work break down structure, gantt chart and budget

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