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How do you use the activity cost for decision making?

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Question added by Nadjib RABAHI , Freelancer , My own account
Date Posted: 2016/05/03
Rami Assaf
by Rami Assaf , loading and Storage Operations Supervisor , Arab Potash Company

Thanks for invitation

 

I amagreeing with my colleague’s answer Mr fuzlar

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

agree with mr. Md. Fazlur Rahman 

Md Fazlur Rahman
by Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

In the context of project management, I would like to recommend as follows:

1.     Several activities together will support to achieve a project objective and several project objectives will contribute to achieve the project goal. So, when the with activity cost are summed up for each period, it gives us the total activity cost of particular periods. Also add to this, the financing cost of each period

2.     Now, estimate the revenue for each period.

3.     Finally, check the NPV and IRR

Decision:

If NPV is reasonably positive or IRR is higher than market rate of interest, you may go ahead to take the project

 

 

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