Question
As a responsible employee for your organization - Why would you be concerned about the project cashflow?Can you compare multiple projects? As an IT colleague,Why
As a responsible employee for your organization - Why would you be concerned about the project cashflow?Can you compare multiple projects?
As an IT colleague,Why would you be looking at cost benefits of a system?Should that be the Accounting and Financial teams responsibility?
Let assume you have done the analysis on 2 projects and have calculated the NPV for the cost and benefits. You have picked the project that you will start based on the analysis and the positive ratios.There is a positive cash flow, the ROI is positive and the ARR is within acceptable ranges.Now that the project has started, and your company has decided to cut cost across the organization to meet the financial projections.Your boss has asked you to cut some of the costs in your project - Capital and expenses. What are your options and how will this request impact your analysis?
Which one would you see as the best way to evaluate the capital investment?NPV, Payback Period method or the Accounting rate of Return?Please elaborate on your answer.
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