Project Management Homework1

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TCM 701 – Project Management
HW #1
1
| Year0| Year1| Year2| Year3| Year4| Year5| Year6|
| $(60,000.00)| | | | | | |
Required| 20%| | | | | | |
cash flows| | $3,000| $15,000| $25,000| $30,000| $20,000| $15,000| NPV| $(5,087.13)| | | | | | |
NPV=$(-60+3/1.2+15/1.2^2+25/1.2^3+30/1.2^4+20/1.2^5+15/1.2^6)*1,000=-$5,087.13

2a
Criteria| Strong Support| Supports Business Strategy| Profit Potential| 10% of Sales from New Products| Competition| Ability to Manufacture| Weighted Total| Project 1| 6.0| 50.0| 40.0| 3.0| 8.0| 0.0| 107.0|

Project 2| 2.0| 0.0| 20.0| 30.0| 6.0| 27.0| 85.0|
Project 3| 12.0| 40.0| 8.0| 9.0| 6.0| 24.0| 99.0|
Project 4| 6.0| 35.0| 8.0| 0.0| 5.0| 3.0| 57.0|
Project 5| 18.0| 25.0| 8.0| 0.0| 2.0| 15.0| 68.0|
Project 1 I rate highest, project 4 I rate lowest.

2b
Criteria| Strong Support| Supports Business Strategy| Profit Potential| 10% of Sales from New Products| Competition| Ability to Manufacture| Weighted Total| Project 1| 15.0| 50.0| 40.0| 3.0| 8.0| 0.0| 116.0|

Project 2| 5.0| 0.0| 20.0| 30.0| 6.0| 27.0| 88.0|
Project 3| 30.0| 40.0| 8.0| 9.0| 6.0| 24.0| 117.0|
Project 4| 15.0| 35.0| 8.0| 0.0| 5.0| 3.0| 66.0|
Project 5| 45.0| 25.0| 8.0| 0.0| 2.0| 15.0| 95.0|
The project selection will change. The highest weighted project scores are 117.0(project3), 116,0(project1) and 95.0(project5).
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