When you borrow for a large project and there are debt issuance costs involved, do you consider those part of the project or operating expense? Saving Changes...
Paul AzanorProject Consultant| Lagos NigeriaIkoyi, Lagos, Nigeria
The PMBOK guide V6 already covered this in Pages 241 and 242. Page 241/Section 7.2 Estimate Costs: " Cost are estimated for all resources that will be charged to the project.This includes but not limited to labor,materials, equipment,services, and facilities, as well as special categories such as an inflation allowance, cost of financing, or contingency costs.Cost estimates may be presented at the activity level or in summary form."
Page 246/ Section 7.2.3.1 " Cost are estimated for all resources that are applied to the cost estimate. This include but not limited to to direct labor,materials, equipment,services, facilities , information technology, and special categories such as cost of financing (including interest charges),an inflation allowance, exchange rates. or a cost contingency reserve. Indirect cost, if they are included in the project estimate, can be included at the activity level or at higher levels."
Page 242/Section 7.2.1.2 " The schedule also provides useful information for projects that incorporate the cost of financing (including interest charges)" Saving Changes...
"When I examine myself and my methods of thought, I come to the conclusion that the gift of fantasy has meant more to me than my talent for absorbing positive knowledge."
