Question
1. Given the following project options, calculate the savings generated over five years. Assume next year's savings hold constant for all five years. Then
1. Given the following project options, calculate the savings generated over five years. Assume next year's savings hold constant for all five years. Then calculate the return on investment for each option.. Investment Option- Estimated Cost- Projected Savings Next Year Projected 5 Year Savings- ROI- Increase Technology Capabilities- Vehicle X Cost Reduction $220 Mil- $34 Mil- $273/unit on 300k $180 Mil- units. Vehicle Y Cost $218/unit on 425k $180 Mil- Reduction units- 2. Given the returns you calculated, which option makes the most sense as a cost-reduction investment?.. 3. What other factors might you consider when evaluating the investment options?
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Project Management A Managerial Approach
Authors: Jack R. Meredith, Samuel J. Mantel,
7th Edition
470226218, 978-0470226216
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