Professor Elam

Monday Jan 20 2014

The exapansion of the Panama Canal was supposed to be done this year and then in 2015.  But like on e of  our Pentagon projects, it is beset with cost over runs. Now instead of $5.3 B the cost is estimated at $7 B.

The expansion holds a lot ofpromise for Texas Gulf Refiners hoping to export natural gas to other countries. And as the article says, for a country with a GDP of $40 B ,this is big money.

At any rate the European contractors want $ 400 M, pronto. I wonder if they have called Bernanke for a loan?

We study long term income recognition in ACCT 3311. Here is a good exmaple that one never knows the final cost until the project is complete, see Chapter 5 in Spiceland.