Estimating a Project’s Costs

Ellen is now able to estimate the project’s costs. The cost of purchases from suppliers are going to be limited to the $15,000 that HP proposed for the NNM software upgrade (see request #70486).

The total internal effort for the 5 additional tasks is 82 hours. When the effort for the Initiation phase is added, Ellen estimates that the total effort will be 100 hours. At a rate of roughly $100 per hour, this means that the total cost of internal effort estimate is $10,000.

Go ahead and fill out the Effort, Cost of effort and Cost of purchases fields in the ‘Assessment’ section of the project.

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