Using the Scenario, answer the following questions about the Financial Appraisal of the option to...

APMG-International Better-Business-Cases-Practitioner Question Answer

Using the Scenario, answer the following questions about the Financial Appraisal of the option to build a new campus on

the site of the Old Fire Station Headquarters.

Decide whether the action taken represents an appropriate application of the Five Case Model for this project and select the response

that supports your decision.

The cost of the temporary accommodation on the site of the Old Fire Station Headquarters has been treated as a revenue cost within

the Financial Appraisal. This temporary accommodation is required as part of the construction of the new campus.

Is this an appropriate application of the Five Case Model for the project?

No, because the Financial Appraisal should NOT contain revenue costs.

No, because construction and refurbishment costs should be treated as capital costs.

Yes, because all construction costs must be accounted for.

Yes, because these represent a cost of developing the scheme.

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