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Using the estimates from (a) & (b), what is the expected cost for the material over the life of the project using the COMPLEX method?

05 / 03 / 2018 Assignment

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(a) You are the project manager for a new high rise office building. You
are working on estimating the exterior landscaping for the new
development. The landscaping requires the use of a special landscape
stone. Based on recent experience the most likely price for the material is
$120.00/ton. However, the price for this stone is volatile, and the price
fluctuates over time based on market conditions and material availability.
The most optimistic price estimate is $80.00/ton, and the most pessimistic
estimate is $180.00/ton.

What is the expected price of the material?
Round to two decimal places.

(b) In addition to price fluctuations, you are also uncertain of how much
of the material will be required for the project. Scope changes and site
conditions will affect the amount of material actually needed. The most
likely amount required is 36 tons. However, as little as 28 tons, and as
much as 56 tons might be required.

What is the expected amount of the material
needed for the project?

(c) Using the estimates from (a) & (b), what is the expected cost for
the material over the life of the project using the COMPLEX method?


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