Project Costing, Budgeting and Financial Appraisal: Installation of a Solar Backup System for McDonalds

Running head: PROJECT COSTING, BUDGETING AND FINANCIAL APPRAISAL
Project Costing, Budgeting and Financial Appraisal: Installation of a Solar Backup
System for McDonalds
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1PROJECT COSTING, BUDGETING AND FINANCIAL APPRAISAL
Table of Contents
Project Costing.................................................................................................................................2
Project Budgeting............................................................................................................................3
Approach......................................................................................................................................3
Managing the project budget.......................................................................................................3
Project Financial Appraisal..............................................................................................................4
Input Values.................................................................................................................................4
Cost Benefit Analysis..................................................................................................................5
Break Even Analysis....................................................................................................................6
Payback Analysis.........................................................................................................................7
References........................................................................................................................................9

2PROJECT COSTING, BUDGETING AND FINANCIAL APPRAISAL
Project Costing
The total cost for the project has been estimated to be $123,800.00 for executing the
various activities related to the Solar Backup system installation for McDonalds. The costing of
the project has been prepared with the help of activity based estimates as presented below:
WBS Task Name Duration Start Finish Cost
0 Solar Backup System
Installation 59 days Mon 03-12-18 Thu 21-02-19 $123,080.0
0
1 Project Management 9 days Mon 03-12-18 Thu 13-12-18 $5,800.00
1.1 Contract 5 days Mon 03-12-18 Fri 07-12-18 $4,200.00
1.2 Project plan 4 days Mon 10-12-18 Thu 13-12-18 $1,600.00
2 Pre-Construction 29 days Fri 14-12-18 Wed 23-01-19 $92,780.00
2.1 Site Survey 3 days Fri 14-12-18 Tue 18-12-18 $2,400.00
2.2 Requirements analysis 2 days Wed 19-12-18 Thu 20-12-18 $1,680.00
2.3 Proposal 1 day Fri 21-12-18 Fri 21-12-18 $840.00
2.4 Approval 1 day Mon 24-12-18 Mon 24-12-18 $440.00
2.5 Permits 3 days Tue 25-12-18 Thu 27-12-18 $2,520.00
2.6 Design 7 days Fri 28-12-18 Mon 07-01-19 $2,520.00
2.7 Final Approval 2 days Tue 08-01-19 Wed 09-01-19 $880.00
2.8 Procurement 10 days Thu 10-01-19 Wed 23-01-19 $81,500.00
3 Construction 16 days Thu 24-01-19 Thu 14-02-19 $22,340.00
3.1 Mounting system 3 days Thu 24-01-19 Mon 28-01-19 $14,300.00
3.2 Electrical wiring 2 days Tue 29-01-19 Wed 30-01-19 $560.00
3.3 Mounting panels 2 days Thu 31-01-19 Fri 01-02-19 $1,120.00
3.4 Mounting inverters &
Batteries 3 days Mon 04-02-19 Wed 06-02-19 $1,800.00
3.5 Testing 4 days Thu 07-02-19 Tue 12-02-19 $2,880.00
3.6 Commissioning 2 days Wed 13-02-19 Thu 14-02-19 $1,680.00
4 Post-Construction 3 days Fri 15-02-19 Tue 19-02-19 $1,760.00
4.1 Final testing 2 days Fri 15-02-19 Mon 18-02-19 $1,360.00
4.2 Close project 1 day Tue 19-02-19 Tue 19-02-19 $400.00
5 Maintenance 2 days Wed 20-02-19 Thu 21-02-19 $400.00