finance 258

1. Mrs. Smith and her husband, George, are planning their retirement and their dream house on the lake.  The lot for the house sits high on a bluff with a beautiful view of the Chesapeake Bay.  The plans for the house show the size of the house to be 3,900 square feet.  The average price for a lot and house similar to this one has been $175 per square foot.  Fortunately, George is retiring from 20 years as an electrician and feels he can save money by installing the electric himself.  Mrs. Smith feels she can take care of the interior decorating.

 

The following average cost information is available from a local bank that makes loans to local contractors and disperses progress payments to contractors when specific tasks are verified as complete.

 

24 %

Excavation and framing complete

8 %

Roof and fireplace complete

3 %

Wiring roughed in

6 %

Plumbing roughed in

5 %

Siding on

17 %

Windows, insulation, walks, plaster, and garage complete

9 %

Furnace installed

4 %

Plumbing fixtures installed

10 %

Exterior paint and finish hardware installed

6 %

Carpet and trim installed

4 %

Interior decorating

4 %

Floors laid and finished

 

a.   What is the estimated cost for the Smith’s house if they use contractors to complete all of the house?

 

b.   Estimate what the cost of the house would be if the Smith’s use their talents to do some of the work themselves.

 

2. System Project. Using the “complexity weighting” scheme shown in Table 1 and the function point complexity weighted table (Table 2) shown below, estimate the total function point count. Assume historical data suggest five function points equal on person month and six people can work on the project.

 

Complexity Weight Table

Number of inputs

20

Rated complexity average

Number of outputs

10

Rated complexity low

Number of inquiries

10

Rated complexity low

Number of files

40

Rated complexity high

Number of interfaces

30

Rated complexity high

Table 1 – Complexity Weighting Table

The total function point count is:

 

Complexity Weighting

Element

Count

Low

Average

High

 

Total

Inputs

20

 

20 x 4

 

=

80

Outputs

10

20 x 2

 

 

=

40

Inquiries

10

10 x 2

 

 

=

20

Files

40

 

 

40 x 12

=

         480

Interfaces

30

 

 

30 x 15

=

450

 

 

 

 

TOTAL

=

1,070

Table 2 – Function Point Complexity

a. What is the estimated project duration?

b. If 20 people are available for the project, what is the estimated project duration?

c. If the project must be complete in six months, how many people will be needed for the project?

 

3. Below is a project WBS with cost apportioned by percents. If the total project cost is estimated to be $500,000, what are the estimated costs for the following deliverables?

 

 

a.  Systems Design?                      

b.  Programming?                          

c.  System testing?             

 

d. What weaknesses are inherent in this estimating approach?

 
Looking for solution of this Assignment?

WHY CHOOSE US?

We deliver quality original papers

Our experts write quality original papers using academic databases.  

Free revisions

We offer our clients multiple free revisions just to ensure you get what you want.

Discounted prices

All our prices are discounted which makes it affordable to you. Use code FIRST15 to get your discount

100% originality

We deliver papers that are written from scratch to deliver 100% originality. Our papers are free from plagiarism and NO similarity

On-time delivery

We will deliver your paper on time even on short notice or  short deadline, overnight essay or even an urgent essay