Calculations 1. Net present value Estimated investment of the lake house project is $40,000. After completion and once tenants move in, the expected returns from the lake house are $5,000, $8,000, and $10,000. The appropriate rate of return is 9%. Calculation of net present value is as follows: NPV= (5000÷(1+0.09)^1)+(8000÷(1+0.09)^2)+(10000÷(1+0.09)^3)-40000 =4587.16+6733.44+7721.83 =$19,042.43 2. Pay back period Total project investment budget is $40,000 Annual cash flow is expected to be $10,000 Pay back period is 40000÷10000= 4 years 3. Cost benefit analysis Increase in revenue by 30% when new construction materials get sourced Payment of workers=$15000 Materials cost =$10000 Training =$5000 Total direct and indirectly costs are 15000+10000+5000=$30000 Increase in revenue can get estimated at $50000 The benefit-cost ratio produces 50000÷30000=1.66 The value is positive and there would be an increase in revenue. Thus purchase of new material would offer better outcomes. 4. Benefit-cost ratio (BCR) The lake house project gets conducted by leasing equipment for $10,000. The BCR shall be NPV÷cost of leasing 19042.43÷10000=1.904 The positive value of BCR indicates that the benefits are far much better than internal costs. Rationale for Recommendations Calculation of NPV is an initial factor required to determine how the project would be viable in the future. Thelake house project shall involve different cnstructors and equipment selected for different stages in the project. As such, the proper method of understanding the lake project's capability of generating profits requires the NPV. NPV gets used as an analysis tool to implement effective capital budgeting processes for the project getting studied (Jagerson, 2021). Since the final calculation indicated that the NPV was a positive value, it was thus easy to finalize the idea that the project’s viability would get guaranteed. Having positive and reliable cash flows in the project is an effective method of handling the project’s improvement as it indicates how the project correlates with different goals. Running head: RISK ANALYSIS & PERFORMANCE ANALYSIS 1 RISK ANALYSIS & PERFORMANCE ANALYSIS 2 Risk Analysis & Performance Analysis By Herbert Greene Dr. Cuffe August 22, 2021 Formal Letter to the Instructor Herbert Greene Antietam Dr Locust Grove, VA (Dr. Cuffe), Designation Dear Sir, I am writing this your way to explain the risks associated with the proposed project. As I have updated you regarding the project's objective that is divided into six milestones, and in each milestone, there are direct or indirect risks associated. The project involves constructing a lake house project that will be constructed on 500*500 feet of land, including interior and exterior features of the construction project. We will be executing the project after finalizing the planning and development of resources through collaboration w ...

1. Calculations
1. Net present value
Estimated investment of the lake house project is $40,000. After
completion and once tenants move in, the expected returns from
the lake house are $5,000, $8,000, and $10,000. The appropriate
rate of return is 9%. Calculation of net present value is as
follows:
NPV=
(5000÷(1+0.09)^1)+(8000÷(1+0.09)^2)+(10000÷(1+0.09)^3) -
40000
=4587.16+6733.44+7721.83
=$19,042.43
2. Pay back period
Total project investment budget is $40,000
Annual cash flow is expected to be $10,000
Pay back period is 40000÷10000= 4 years
3. Cost benefit analysis
Increase in revenue by 30% when new construction materials
get sourced
Payment of workers=$15000
Materials cost =$10000
Training =$5000
Total direct and indirectly costs are
15000+10000+5000=$30000
Increase in revenue can get estimated at $50000
The benefit-cost ratio produces 50000÷30000=1.66
The value is positive and there would be an increase in revenue.
Thus purchase of new material would offer better outcomes.
4. Benefit-cost ratio (BCR)
The lake house project gets conducted by leasing equipment for
$10,000. The BCR shall be NPV÷cost of leasing
19042.43÷10000=1.904
The positive value of BCR indicates that the benefits are far
much better than internal costs.

2. Rationale for Recommendations
Calculation of NPV is an initial factor required to determine
how the project would be viable in the future. Thelake house
project shall involve different cnstructors and equipment
selected for different stages in the project. As such, the proper
method of understanding the lake project's capability of
generating profits requires the NPV. NPV gets used as an
analysis tool to implement effective capital budgeting
processes for the project getting studied (Jagerson, 2021). Since
the final calculation indicated that the NPV was a positive
value, it was thus easy to finalize the idea that the project’s
viability would get guaranteed. Having positive and reliable
cash flows in the project is an effective method of handling the
project’s improvement as it indicates how the project correlates
with different goals.
Running head: RISK ANALYSIS & PERFORMANCE
ANALYSIS 1
RISK ANALYSIS & PERFORMANCE ANALYSIS
2
Risk Analysis & Performance Analysis
By
Herbert Greene
Dr. Cuffe
August 22, 2021

3. Formal Letter to the Instructor
Herbert Greene
Antietam Dr
Locust Grove, VA
(Dr. Cuffe), Designation
Dear Sir,
I am writing this your way to explain the risks associated with
the proposed project. As I have updated you regarding the
project's objective that is divided into six milestones, and in
each milestone, there are direct or indirect risks associated. The
project involves constructing a lake house project that will be
constructed on 500*500 feet of land, including interior and
exterior features of the construction project. We will be
executing the project after finalizing the planning and
development of resources through collaboration with
stakeholders. I have also shared milestones for the task and the
sequence used to achieve each task. The purpose of this letter is
to inform you about risks that might be confronted during
project processes and affect expected outcomes. Several risks
that might occur during project process includes lack of enough
time, lack of capital, and insufficient human resource. These
three risks are expected and would imply greater influence over

4. the completion of the project. The assessment and management
of these risks are crucial to avoid challenges throughout the
project process. Shortage of capital is one of the biggest risks,
and its impact would be higher than the rest of the two. One of
the biggest costs associated with each risk would be a delay in
completing the project process and a waste of available
construction material. Because the project completion will be
delayed, available construction material would waste and put an
extra financial burden on stakeholders. The human resource
department and internal stakeholders of the organization are
responsible for tackling these risks. For example, the shortage
of capital would be managed by the collaboration of
stakeholders (Banaitiene & Banaitis, 2012). Similarly, the
shortage of human capital and time would be managed by the
human resource management department.
I have prepared a risk response for all these three risks that
would be helpful to manage and avoid complications throughout
the project process. By using qualitative and quantitative
measures, the adjustment of associated risks are as follows;
Likelihood
Higher
Slight
Lower
No Impact at All
Shortage of Capital

5. Shortage of Human Resource
Shortage of Time
Risk
The above table shows the frequency of occurrence of each risk
that also indicates the impact it would imply over the whole
project. Shortage of capital and time is highly effective in terms
of impacts and costs associated with these risks. Effective
planning of each task and hiring an additional workforce is the
solution to manage the scheduled time for the project. Some
tasks of the project would be outsourced to ensure that the
project is completed on time. And the risk response for the
shortage of capital will be to ensure that we would have
alternative means to meet the crossing needs of capital.
Part 2:
After the assessment of risks and execution of the project, the
further step is to track the performance of the project. The tool
used to track project performance and evaluate whether or not
everything is on track is a regular assessment of each task,
using an outline of the project that we made at the start to track
whether or not everything is going well. Regular assessment
means weekly meetings would be arranged in which each
member of the project team will participate to share the
performance of each task. Every week, every member will share
their progress, use the budget, time, constraints that they are

6. facing, and expected outcomes to figure out project performance
and make recommendations. In weekly meetings, along with
discussing the previous week's performance, a schedule for the
upcoming week would also be discussed that would be helpful
to keep track of project performance and measure whether the
project will complete within the stated time and budget. I would
also like to add that the project will take one year because it is a
complex construction project; thus, the approximated time is
one year. All six milestones will be achieved one by one
throughout the year.
Yours Sincerely,
Project Manager
References
Banaitiene, N., & Banaitis, A. (2012). Risk Management in
Construction Projects. DOI: 10.5772/51460.
2
Lake House Project Part 5

7. Herbert Greene
Week 5 Assignment
Dr. Cuffe
August 23, 2021
Part 1
Resource Costing
Cost estimates include the cost and assumptions underlying each
cost. The assumptions cover all the cost inclusions and
exclusions which are important for the project stakeholders to
interpret project costs and to understand how and where actual
cost might differ from approximated costs. In this section we
are concentrating on labor cost. This is the cost of human effort
expended towards project objectives. The method to use for cost
estimate is the preliminary estimates. This will use detailed
scope information to incorporate unit cost. The work breakdown
has been prepared together with the project Gantt chart. This is
important in the cost estimation part.
The table below shows the human resource that will be used in
the project that include the person, position title and pay rate.
The workers will be required to work for 40 hours a week from
Monday to Friday where there will be no overtime awarded.
Person Name
Position
Pay rate per hour
James Robert
Project Manager (PM)
$55
Grace Addison
General Contractor (GC)
$100
Simon Kant
Site Excavation contractor (SEC)
$ 65
Mercy Willow
Electric contractor (EC)

8. $ 65
Boniface Hamid
Plumbing contractor (PC)
$ 65
Peter Jonathan
Concrete contractor (CC)
$ 65
Wilson Alan
Framing contractor (FC)
$ 65
Stanley Kay
Roofing contractor (RC)
$ 75
Jeremiah Buster
Masonry contractor (MC)
$ 50
Hannah Aubrey
HVAC contractor (HC)
$ 75
Keats John
Insulation contractor (IC)
$ 65
Charles Keillor
Painting contractor (PAC)
$ 50
Kelly Walt
Finish carpentry contractor (FCC)
$ 50
Alex Kennan
Flooring contractor (FLC)
$ 50
Kepa Robert
Fencing contractor (FEC)
$ 50
Kesey John
Landscape contractor (LC)

9. $ 65
Table 1showing human resource data sheet in the project
The resource loading list consists of the task, the resource
assigned and the percent of time allocated for each task.
Task
Planning and estimates development
20% PM
35% GC
Permits acquiring
65% PM
Clear and grub lot
85% SEC
Install temporary power
85% EC
5% PC
Install underground utilities

10. 35% EC
20% PC
Excavation for foundation
75% SEC
Erect basement walls
55% CC
Backfill foundation
75% SEC
Framing work
80% FC
Exterior finishing
35% MC

11. 20% FC
Utility installation
20% PC
10% EC
5% HC
Interior finishing
10% IC
35% PAC
20% FCC
15% PC
20% EC
5% HC
Flooring, carpeting and tiles
45% FLC
Landscaping and ground works
5% CC
10% FEC
20% LC
Table 2showing resource loading list
Formal letter to the Supervisor

12. Herbert Greene
Antietam Dr
Locust Grove, VA
(Dr. Cuffee), Designation
Dear Sir
I hereby write to inform on the project resource allocation and
costing for the project. The project resources will consist
construction materials, human labor and construction
equipment. Application timeline for the material will go hand-
in-hand as the Gantt chart where the activities will be scheduled
and time allocation for each resource stated. The resource
allocation has been done using preliminary estimates where
each activity has been considered separately. The Gantt chart
shows all the project activities where from previous experience
and the house size the architect was able to provide an estimate
of the required resources. This have been compared to the
resources used in similar projects conducted in the area to
increase accuracy.
The ground condition from study and observation has good
stable foundation soil which will favor the construction and
reduce foundation in terms of cost and time. The area has good
infrastructure in terms of roads where the required materials and
equipment will access the site with ease. The site construction
has also come at a favorable time with conducive w eather with
no rains except for the high temperature which will affect
workers productivity. The foundation will require more of
excavation contractor for excavating and backfilling where the
concrete contractor will come in to erect the walls. The
plumbing contractor will also lay the foundation plumbing
work.
The ground floor will follow together with the building columns
as per the design. This part requires many temporary laborers
under the masonry and concrete contractors as it is labor
intensive. The general contractor’s work here is supervision and
inspection. The laborers for this section will be obtained from

13. the area who will be hired and paid weekly. To ensure smooth
flow of work the workers will be required to guarantee
availability for the whole week and in case of absence to report
one day earlier. The roofing, exterior and interior finish will
then be done as per the work schedule. This will involve the
roofing contractor for the roofing work while for the finishes,
the painting, HVAC, carpentry, electrical and plumbing
contractor will be involved. The general contractor will ensure
quality of work is maintained and all the resources are used
correctly.
The resource cost list and the resource loading list have been
provided.
Yours sincerely
(Student Name), Project Manager
Small Lake Cabin Project
Small Lake Cabin Project
Herbert J Greene
Week 2 Assignment
Dr. Cuffee
July 28, 2021

14. Herbert Greene
Locust Grove,
Virginia.
27 July 2021
Dr. Cuffee
Supervisor
Dear Dr., Cuffee,
I am writing about the Lake project deliverable required for the
semester. The contents of this letter are effective in
understanding how the lake project shall get conducted and how
the financial calculations involved. Since I am fronting most of
the money this is what the calculations on what will be needed
to complete the project.
Calculations
1. Net present value
Estimated investment of the lake house project is $40,000. After
completion and once tenants move in, the expected returns from
the lake house are $5,000, $8,000, and $10,000. The appropriate

15. rate of return is 9%. Calculation of net present value is as
follows:
NPV= (5000÷ (1+0.09) ^1) +(8000÷ (1+0.09) ^2) +(10000÷
(1+0.09) ^3)-40000
=4587.16+6733.44+7721.83
=$19,042.43
2. Pay back period
Total project investment budget is $40,000
Annual cash flow is expected to be $10,000
Pay back period is 40000÷10000= 4 years
3. Cost benefit analysis
Increase in revenue by 30% when new construction materials
get sourced
Payment of workers=$15000
Materials cost =$10000
Training =$5000
Total direct and indirectly costs are
15000+10000+5000=$30000
Increase in revenue can get estimated at $50000
The benefit-cost ratio produces 50000÷30000=1.66
The value is positive and there would be an increase in revenue.
Thus, purchase of new material would offer better outcomes.
4. Benefit-cost ratio (BCR)
The lake house project gets conducted by leasing equipment for
$10,000. The BCR shall be NPV÷cost of leasing
19042.43÷10000=1.904
The positive value of BCR indicates that the benefits are far
much better than internal costs.
Rationale for Recommendations
Calculation of NPV is an initial factor required to determine
how the project would be viable in the future. Thelake house
project shall involve different cnstructors and equipment
selected for different stages in the project. As such, the proper
method of understanding the lake project's capability of
generating profits requires the NPV. NPV gets used as an
analysis tool to implement effective capital budgeting processes

16. for the project getting studied (Jagerson, 2021). Since the final
calculation indicated that the NPV was a positive value, it was
thus easy to finalize the idea that the project’s viability would
get guaranteed. Having positive and reliable cash flows in the
project is an effective method of handling the project’s
improvement as it indicates how the project correlates with
different goals.
Assessment of the payback period is a suitable method to handle
the project’s completion. This is majored on the fact that a
breakeven point gets reached once the project's activities get
conducted in a rewuired way. It is possible to rely on the lake
project’s payback period assessment that generates clear
directions for participants t submit all deliverables on time.
The cost benefit analysis process offered a positive value
indicating positive viability of the project’s activities. It was
possible to perform the assessment and determining how the
lake project would operations with different equipment.
Application of the benefit cost ratio further offered better
understanding of how the project would work in future. Since
there are different direct and indirect costs for the project’s
operations it would be imperative to implement the BCR
analysis. The technique determines value of money used to
handle the project’s activities (Hayes, 2020). The lake projects
value was greater than one indicating a possibility of generating
positive revenue.
After assessing all calculations, it was clear that improvement
of thelake project would be possible by using diverse valid
calculations to increase productivity. I believe the contents of
this letter shall provide understanding of the lake project’s
deliverables.
Yours sincerely,
Herbert Greene
.

17. References
Hayes, A. (2020). Benefit-Cost Ratio. Retrieved 26 July 2021
from https://www.investopedia.com/terms/b/bcr.asp
Jagerson, J. (2021). What is the formula for Calculating Net
Present Value? Retrieved 26 July 2021 from
https://www.investopedia.com/ask/answers/032615/wha t-
formula-calculating-net-present-value-npv.asp
8
Lake House Project Part 1 & 2
Herbert Greene
Week 3 Assignment
Dr. Cuffee
August 3, 2021

18. PART 1
Project Scope
Project Objective
The project involves construction of a lake house proj ect
whereby assorted size rental units will be constructed on a
500*500 feet piece of land that is part of my investment for the
project apart from the fronted investment fund. The rental units
are projected to have a return of $5,000, $8,000 and $10,000.
This project is supposed to provide a viable investment
opportunity as a real estate venture by providing executive
housing solution to the growing population in Denver.
Project Deliverables
The project Deliverables include 6 mansionettes fully built with
both standard interior and exterior features.
Milestones
· Mobilization of onsite requirements installations
· Laying of foundation
· Concrete Forming and Pouring - Floors and Roof
· Masonry work
· Roofing
· Installing finishes
· Plumbing
· Electrical
· Heating and ventilating
· Complete final Inspection
Technical Requirements
· Electricals
· Heating and ventilating equipment
· Logistics
Project Constraints
Lack of enough time to complete milestones. Since the project
works on estimated time, the project is exposed to the risk of
falling behind schedule if one phase of the projects slacks.

19. Lack of enough capital. Since funding will mainly come from
different stakeholders, reliance on them as a source of funding
exposes the project to delays when a stakeholder fails behind in
their payments.
Insufficient human resource. The project is a labour intensive
project thus having reliable skilled and non-skilled workers will
be paramount in making sure the project does not stall.
Ethical and Social Responsibility considerations
Reduction in carbon footprints through the use of solar energy
and biogas as the main source of lighting and heating for the
houses.
85% of supplies for the project, including labor and
construction materials will mainly come from established
manufacturers or suppliers from the Denver locality as a mode
of benefiting the local environment.
The Lake housing will also prioritize the needs of local citizens
concerning the project, for example effect of the project on
social integration during the planning phase of the project.
Customer review
(Enter Instructor’s feedback)
PART 2

20. Formal Letter to the Instructor
Herbert Greene
Antietam Dr
Locust Grove, VA
(Dr. Cuffee), Designation
Dear Sir
I hereby write to provide a general overview of the Work
Breakdown Structure for the Lake House Project (LHP). The
project will mainly involve four resources including General
contractor, Architect, Owner, & Mortgage lender. The project
will start immediately after the finalization of plans and
development of estimates among the management and external
stakeholders. This will be followed by the application of
necessary from authorities responsible in Denver including
HVAC permit. The provision will be followed by the site work
for preparation of the main construction site. This involves
clearing and grubbing the unnecessary lot and installing ground
and power service. Accomplishment of this step will be an
important process in supporting establishment of the main
foundation for the housing units including excavating and
laying foundation for basement walls. This notion will be
followed by framing and Dry In. The exterior walls finishing
will be the next step which will be done concurrently with the
plumbing and interior finishing. The last stage will involve
landscaping and ground works which involves installing
backyard fences and establishing concrete driveways and
sidewalks. Finally, the project manager will evaluate and submit
a final report on the project whereby the deliverables will be
assessed for their quality.
Attached is a Gantt Chart providing a visualization of the WBS
including the critical paths for the project.
Yours sincerely
(Student Name), Project Manager
Gantt Chart