The project will cost $990,910.58 and the most expensive activity is Detailed Product Design at a cost of $190,168.27. What does the cash flow statement tell you about how costs are distributed over the lifespan of the project?
According to the project’s cash flow, the costs of the project keep reducing over the lifetime of the project. This is because the required takes of the project keep reducing towards the end of the project as it nears completion. In the case of Red Zuma, the resource-intensive and time-intensive activities were some of the first ones in the project, and this explains why the cost keeps dwindling towards the end of the project.