Project Management: Cost Estimation, Communication Plan, and Responsibility Assignment Matrix

Running head: PROJECT MANAGEMENT
Project Management
Name of the Student:
Name of the University:

1PROJECT MANAGEMENT
1. Cost estimation
The total cost estimation for the development of carpooling application is $10,098.
The estimation of cost is based on the project activities which are listed in the below
table. The hourly rate of both internal as well as external labour is determined by the
project manager with an assumptions of total internal and external labour. The cost is
based on the actual hour worked by the team members.
Parametric cost estimation is used to estimate the project cost, uses of relations among
the variables for calculation of project cost. In this plan, parametric estimate is being used
to determine by identification of labour and per hour cost for each labour required for the
project plan. Below table shows the total cost estimation for the development of
carpooling application such as:
Task name Interna
l
labour
$/hr Interna
l total
Externa
l labour
$/hr Externa
l
Total
labour
Total cost
Drawing a
sketch of the
application
25 $
35.0
0
$
875.00
- - $
875.00
$
875.00
Search for
platform to
make the
application
35 $
50.0
0
$
1,750.0
0
- - $
1,750.0
0
$
1,750.00
Application
development
platform
32 $
40.0
0
$
1,280.0
0
- - $
1,280.0
0
$
1,280.00
Social media
integration
35 $
35.0
0
$
1,225.0
0
15 $
30.0
0
$
450.00
$
1,675.0
0
$
1,675.00
App
customizatio
n
50 $
30.0
0
$
1,500.0
0
- - $
1,500.0
0
$
1,500.00
Server
backup
30 $
50.0
0
$
1,500.0
0
20 $
30.0
0
$
600.00
$
2,100.0
0
$
2,100.00
Subtotal $
9,180.00
Reserves 918
Total 207 $
8,130.0
0
$
9,180.0
0
$
10,098.00

2PROJECT MANAGEMENT
Initial cost benefit analysis is listed as:
Discount Rate Used 5.00%
Annual Benefits $
12,000.00
Annual Operational Costs $
7,800.00
One-Time Development
Cost
$
7,000.00
Year of Project
0 1 2 3 4 5 TOTALS
Economic Benefit $0.00 $
12,000.00
$
12,000.00
$
12,000.00
$
12,000.00
$
12,000.00
Discount Rate 1.0000 0.9524 0.9070 0.8638 0.8227 0.7835
PV of Benefits $0.00 $11,428.57 $10,884.35 $10,366.05 $9,872.43 $9,402.31
NPV of all BENEFITS $0.00 $
11,428.57
$
22,312.93
$
32,678.98
$
42,551.41
$
51,953.72
$
51,953.72
One-Time COSTS $
(7,000.00)
Recurring Costs $0.00 $
(7,800.00)
$
(7,800.00)
$
(7,800.00)
$
(7,800.00)
$
(7,800.00)
Discount Rate 1.0000 0.9524 0.9070 0.8638 0.8227 0.7835
PV of Recurring Costs $0.00 $
(7,428.57)
$
(7,074.83)
$
(6,737.93)
$
(6,417.08)
$
(6,111.50)
NPV of all COSTS $
(7,000.00)
$
(14,428.57)
$
(21,503.40)
$
(28,241.33)
$
(34,658.41)
$
(40,769.92)
$
(40,769.92)
Overall NPV $
11,183.80
Overall ROI 0.2743