An organization usually commits more money as a project continues, therefore a management review should occur after each phase to evaluate progress, potential success, and continued compatibility with organizational goals.1. True2. False

1. true

Explanation:

When a project goes from one stage to another, a company usually has to commit more money to the project. As a result of this, it is very important that there is a management review after each phase of the project is completed. This will help to ensure evaluation of the project's progress as well as ensure compliance with the goals of the organization for which the project was set in motion.

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1) True

Explanation:

Most projects run on an established schedule and budget, and they also have a predetermined life span. For example, an electric plant takes two years to build and costs XX amount of money, and has a useful life span of 15 years. This initial useful life span can be considered as phase one of the project. As the project continues and the "expiration" date of the project gets near, the company must decide whether to reinvest more money on updating the project to increase its life span or simply shut it down and liquidate it once it reaches its target termination date.

This applies to all industrial and infrastructure projects that have a target termination date (all projects have a finite life span) that require additional funds invested to extend their use. For example, a car manufacturer uses specific machinery to produce a certain car model and if that car model will be updated, the factory requires new machinery to produce the new model.

Many countries allow accelerated depreciation in order for industrial companies to replace machinery after shorter periods, e.g. Germany or Chile where machinery can be fully depreciated in just 5 years. This forces the companies to decide whether to extend the life span of factories through new investments or shut them down.

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