Project Management: Sister Wedding Project

Running head: PROJECT MANAGEMENT Sister Wedding Project Name of the Student: Name of the University: PROJECT MANAGEMENT 1 1. Project name The selected project for the report is sister wedding, in which I am involved. 2. Business case 2.1 Cost of the proje ct, financial be ne fit and two financial me asure s The project plan proposes the business case of planning 3 -month wedding project for sister’s wedding. The business case provides legal and memorable wedding experiences and left the guests to involve in sense of pleasure plus fulfilment , provided the time restraint of 3 months and budget restriction of $25,000 with invite list of 200 attendees. The development cost items will include: the wedding service plus reception site organized decoration, outfitted dinner, cake cutting, photographer, and list of gues t, wedding invitations, ceremony programs and thank you note (Frey et al. 2018) . The project budget is to be funded by the project sponsor. 2.2 Justification on re turn of the financial re turn The financial return of the project is 7% means that there is positi ve ROI as total returns are to be greater than associated project cost. 2.3 Alignme nt of proje ct to the organizationa l obje ctive s The project is aligned with the organiza tio na l objectives by means of the following: i. The project deliverables are being inspecte d by bride plus groom before they are secured for the wedding ceremony (Zaitsev, Kichigin and Korotkova 2019) . ii. The project manager is accountable to provide sponsor with project status on weekly basis by completion of the plan with budget of $25,000 and t he cost is advanced as resources and cost estimatio n are delivered for slight services. PROJECT MANAGEMENT 2 iii. The project team will bring the deliverables of the project by providing breakdown of the budget allocatio n plus researching on cost of the services. ROI calculation: Table 1: Cost be ne fit analysis showing the value of ROI (Source: Created using MS Excel) Cost-Be ne fit - INPUT VALUES Cost ite ms (£) Wedding venue 5,000.00 $ Suppliers provided 5,600.00 $ Food, drinks and services 8,000.00 $ Total price 18,600.00 $ Marriage license 100.00 $ Elopement services 9,000.00 $ Decorations 4,320.00 $ Total cost 13,420.00 $ Postage stamps 1,200.00 $ Wedding programs 8,000.00 $ Invitation 1,500.00 $ Additional expenses 11,000.00 $ Total Be ne fit 21,700.00 $ Discount Rate Use d 5.00% Proje ct Cost-Be ne fit Analysis Analysis Variable s: Discount Rate Use d 5.00% Annual Be ne fits 21,700.00 $ Annual Re curring Costs 13,420.00 $ One -Time Initiative Cost 18,600.00 $ Ye ar of Proje ct 0 1 2 3 TOTALS Economic Benefit $0.00 21,700.00 $ 21,700.00 $ 21,700.00 $ Discount Rate 1.0000 0.9524 0.9070 0.8638 PV of Benefits $0.00 $20,666.67 $19,682.54 $18,745.28 NPV of all BENEFITS $0.00 20,666.67 $ 40,349.21 $ 59,094.48 $ 59,094.48 $ One -Time COSTS (18,600.00) $ Recurring Costs $0.00 (13,420.00) $ (13,420.00) $ (13,420.00) $ Discount Rate 1.0000 0.9524 0.9070 0.8638 PV of Recurring Costs $0.00 (12,780.95) $ (12,172.34) $ (11,592.70) $ NPV of all COSTS (18,600.00) $ (31,380.95) $ (43,553.29) $ (55,145.99) $ (55,145.99) $ Ove rall NPV 3,948.49 $ Ove rall ROI 7% PROJECT MANAGEMENT 3 Payback calculation: Investme nt= $25,000 Annual benefits = $21,700 Payback period (in year) = $25,000/$21,700 = 1.1 year 3. Project selection submission Benefit meas urement method is used as project selection criteria, where the cost - benefit analysis is used to compare the project cost against the project benefits. Considering the sister wedding project planning, the cost of wedding venue/rentals, food drinks and serv ice, cake, wedding decorations, photography, wedding attire and additional expenses are considered. The benefit of the sister wedding can bring an increase in revenue and expansion of the event, which is positive for the wedding planner business (Judge 201 9). Discounted cash flow model is used as the financial model to estimate value of the investment based on the expected future cash flow (Ilin, Kalinina and Barykin 2018) . The project can exceed the criteria based on this financial model by analysing the c urrent cost of investment for the sister’s wedding, and the opportunity will result in the positive returns. The alternative project with the same value is related to the event of friends and family party. The value of the party is nearly same as $25,000 . The high -level requirements to estimate the project cost are: party space to accommodate 200 guests with the tables and chairs. Entertainment is to be provided such that the party guests are not sitting alone. The invitation of the guests, venue selectio n, supplier contracts, prospective sales appointments, party clean up and party decorations. PROJECT MANAGEMENT 4 4. Cost estimate 5. Summary The project plan summarized that the sister’s wedding project is getting benefits and there is a return in their investment is 7%. The pro ject manager and project sponsor manage the project to be finished within the estimated budget of $25,000. Cost ite ms Cost (in $) Reception venue/rentals 1,000.00 $ Food, drinks and services 3,000.00 $ Invitation for 200 guests 2,000.00 $ Cake 200.00 $ Wedding decorations 800.00 $ Wedding flowers 1,000.00 $ Wedding photography 750.00 $ Wedding attire 1,500.00 $ Stationary 500.00 $ Additional expenses 1,000.00 $ Officiate fees 100.00 $ Wedding license 125.00 $ Ceremony location fees 10,000.00 $ Execute wedding ceremony 3,025.00 $ Total cost 25,000.00 $ PROJECT MANAGEMENT 5 References Frey, G.E., Cubbage, F.W., Ha, T.T.T., Davis, R.R., Carle, J.B., Thon, V.X. and Dzung, N.V., 2018. Financial analysis and comparison of smallholder forest and state forest enterprise plantatio ns in Central Vietnam. International Forestry Rev iew , 20 (2), pp.181 -198. Ilin, I., Kalinina, O. and Barykin, S., 2018. Financial logistics innovations in IT Project Management. In MATEC Web of Conferences (Vol. 193, p. 05062). EDP Sciences. Judge, F., McAuliffe, F.D., Sperstad, I.B., Chester, R., Flannery, B., Lynch, K. and Murphy, J., 2019. A lifecycle financial analysis model for offshore wind farms. Renewable and Sustainable Energy Rev iews , 103 , pp.370 -383. Zaitsev, A., Kichigin, O. and Korotkova, A., 2019, October. Standard dynamic financial analysis and control tools of an enterprise in the time of digital economy. In Proceedings of the 2019 International SPBPU Scientific Conference on Innov ations in Digital Economy (pp. 1-7).