Purchase Solution

At what point should a project be cancelled?

Not what you're looking for?

Ask Custom Question

At what point should a project be cancelled?

Purchase this Solution

Solution Summary

3 paragraph discussion of this question.

Solution Preview

According to Robichek and Van Horne (1967), "a project should be abandoned at that point in time when its abandonment value exceeds the net present value of the project's subsequent expected future cash flows discounted at the cost of capital rate." Translated into more common language, they stated that as a rule, a project should be cancelled when it no longer provides value to the stakeholders. They also imply that sometimes a project should not be cancelled ...

Purchase this Solution


Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.