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A Common Reason for Cost Overruns in a Project Is

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A common reason for cost overruns in a project is a low initial estimate of project cost.


Definitions:

Future Value

The value of an investment at a specific future date, accounting for factors like interest rates and compound interest.

Present Value Factor

A multiplier used to determine the present value of a future amount of money or stream of cash flows.

Present Value

The contemporary valuation of future monetary streams or a single sum, discounted at a chosen rate of interest.

Savings Accounts

Deposit accounts held at financial institutions that provide a modest interest rate, allowing individuals to save money securely.

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