When using the free-cash flow model, cash flows are discounted at the weighted average cost of capital (WACC) and when using the dividend discount model, dividends are discounted at….
Tree Trimming Case Study
Read through the Tree Trimming Project case in chapter 13 of the textbook. This case refers to the earned value (EV) of the owner, Will Fence’s Tree Trimming business. Will briefly describes his techniques for EV. Based on the description provided in the case, is Will using EV? Answer the corresponding question provided at the end of the case (300-500 words). Use references from the reading materials to support your response. APA format is not required, but solid academic writing is expected. You are not required to submit this assignment to Turnitin, unless otherwise directed by your instructor. If so directed, refer to the Student Success Center for directions. Only Word documents can be submitted to Turnitin.
Tree Trimming Project Case Study :
Wil Fence is a large timber and Christmas tree farmer who is attending a project management class in the fall, his off season. When the class topic came to earned value, he was perplexed. Isn’t he using EV? Each summer Wil hires crews to shear fields of Christmas trees for the coming Holiday season. Shearing entails having a worker use a large machete to shear the branches of the tree into a nice, cone shaped tree. Will describes his business as follows: A. I count the number of Douglas Fir Christmas trees in the field (24,000).B. Next, I agree on a contract lump sum for shearing with a crew boss for the whole field ($30,000).C. When partial payment for work completed arrives (5 days later), I count or estimate the actual number sheared (6,000 trees). I take the actual as a percent of the total to be sheared, multiply the percent complete by total contract amount for the partial payment [(6,000/$30,000 5 25%), (.25 3 $30,000 5 $7500)].
1. Is Wil over, on, or below cost and schedule? Is Wil using earned value?
2. How can Wil set up a scheduling variance?