Description
In this milestone, you will analyze the Fabricant Manufacturing Project and begin tasks related to initiation.
To complete this assignment, review the Milestone One Guidelines and Rubric document.
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Explanation & Answer
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Running head: PROJECT INITIATION
Project Initiation
Name
Institution
Date
PROJECT INITIATION
Fabricant Manufacturing has been given a project to replace the existing interior and
exterior lighting in the Fabricant warehouses, workspaces as well as the break rooms with the
modern lighting system. So as to ensure that the project is feasible for the organization, a review
of economic, technical as well as the organizational feasibility of the project is conducted as
below (Kerzner, H., & Kerzner, H. R.2017).
The economic feasibility assists an organization in assessing the viability, the cost and the
benefits related to a given project before allocating the financial resources. The main aim of the
project is to replace the current lighting system with the modern lighting system. The initial cost
of the project is estimated to be $310,000 whereby the incentives and rebates will be estimated to
be $245,000. Thus, the whole project will cost around $65,000. In addition, the project is
approximated to save more than 1.1 million kWh annually and $142,000 utility cost for each
year, with a return on investment (ROI) around 89%. The project has some risks such as; the cost
could be more than the estimate and the return on investment could be less but all the estimates
fit within the three primary objectives of the company.
Technical feasibility is explained as the assessment of technical...