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  #21  
Old 07-14-2017, 07:46 PM
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I started to do them, but then I noticed the Pv of some long costs are not given although the annula payment is given? Should we calculate them? For contingency, since we removed some costs, the one that we are given is valid anymore, is it true?
I don't recall the pv's being ignored for any of the items in that large spreadsheet that lists all the items. If they were ignored then I didn't change that when I did it and didn't notice that they were being ignored. I only modified that spreadsheet to zero items out as instructed.

Do you mean the 15% contingency? It's still 15% on whatever remains on the spreadsheet.
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Last edited by ao fan; 07-14-2017 at 07:50 PM..
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  #22  
Old 07-14-2017, 08:14 PM
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I don't recall the pv's being ignored for any of the items in that large spreadsheet that lists all the items. If they were ignored then I didn't change that when I did it and didn't notice that they were being ignored. I only modified that spreadsheet to zero items out as instructed.

Do you mean the 15% contingency? It's still 15% on whatever remains on the spreadsheet.
Because the annula payment is given, and I need to apply sensitivity test. But it was not clear that Test no.of year is zero for long term, although it is sum of No. of year and the yellow cell. Do u have an idea why? Also, for contingency I sum the all short costs that I have left then I took 15% of total short cost?
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  #23  
Old 07-14-2017, 08:20 PM
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not following you at all. I remember the spreadsheet basically already being set up and just having to change input items to vary any number of things that they ask you to vary. it isn't a lot of work here.

sorry, maybe someone else will know what you're referring to.
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Old 07-14-2017, 08:47 PM
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I have question the contingency allowance is applied for direct and indirect costs?
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Old 07-14-2017, 08:51 PM
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Originally Posted by ao fan View Post
not following you at all. I remember the spreadsheet basically already being set up and just having to change input items to vary any number of things that they ask you to vary. it isn't a lot of work here.

sorry, maybe someone else will know what you're referring to.
I am checking their values? Also for contingency I can't use what is given since we removed some costs? Should contingency apply for both direct and direct costs?
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  #26  
Old 07-14-2017, 09:01 PM
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if you remove costs, then the contingency is not going to be on those costs since they are now gone. I didn't check the math in their spreadsheet other than maybe to understand what it was doing, but if you want to, go for it. the 15% was on everything. pretty sure the spreadsheet does it automatically though.
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Old 07-14-2017, 09:48 PM
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Quote:
Originally Posted by ao fan View Post
if you remove costs, then the contingency is not going to be on those costs since they are now gone. I didn't check the math in their spreadsheet other than maybe to understand what it was doing, but if you want to, go for it. the 15% was on everything. pretty sure the spreadsheet does it automatically though.
Thanks a lot for your reply. Thanks for your help and explain everything that was not clear. I do appreciate your quick reply.
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Old 07-15-2017, 04:46 PM
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Just to check, when we find the inflation that equivalent to 15%, should we keep Salvage values or remove them, since it will be earned I add them to the cost, but I read here mentioned that he removed them when he calculated the inflation. Also, the value of the inflation rate should be in the range 4%-6%

Last edited by Actuary2017; 07-15-2017 at 05:19 PM..
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  #29  
Old 07-15-2017, 09:43 PM
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don't really remember sorry. also, iirc the value of the equivalent inflation rate is not going to be the same for everyone. it depends on what items you remove.

whatever you do, just explain it in the memo and you should be fine.
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  #30  
Old 08-03-2017, 05:35 AM
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May I ask a question?
I still feel confused about the 15% contingency allowence.
Is it the ratio of the revised MMLC cost to saving of CanDo?
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