saint gba327 module 4 assignment 4 -Case Study 10 latest 2015 winters

Case Study 10 – The Cost of PRIDE?

10-6. Which development expenses are likely to be

10-7. Which operation expenses are likely to be

10-8. Considering operational expenses,

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10-9. Suppose Dr. Flores has told your investor that he is willing to hire Maggie and other experts as needed to fully investigate any two sources of costs.

10-10. Suppose you decide, using data that we do not yet have, that the PRIDE upside potential is large enough to justify the investment risk, if the cost estimates are accurate. They might be quite accurate, but then again, they could be low by a factor of 3 or even 5. How would you advise the investor who hired you?

10-11. Suppose the investor who hired you tells you that you haven’t done your job if you can’t get closer than a factor of 3 to 5 in your assessment of their cost assessment. How do you respond?

10-12.Assume that some of the costs are simply not knowable, by anyone, however skilled they are, at the time of the analysis. A good example is the cost of adapting PRIDE software to changes in healthcare law. Did you include any such costs in your answer to question 10-9? If so, are you wasting Maggie’s time and Dr. Flores’ money by asking questions about them? How would you advise your investor to consider such costs?