Question
Hello. please help me with the sensitivity analysis and finding the risk % for alternatives mentioned below in a form of a table as Variable
Hello. please help me with the sensitivity analysis and finding the risk % for alternatives mentioned below in a form of a table as
Variable | Best Case Scenario | Worst Case Scenario | Risk % |
The objective is to estimate the probability of the risks associated with variables and chances of its occurrence and the impact that it will make on the solution. Finally, convert the result to a risk level between the range of low-to-high.
The financial data and required information NEEDED is also provided below:
ALTERNATIVE 1- MODIFYING THE HIRING PROCESS
ALTERNATIVE 2- RECOGNIZING AND REWARDING EMPLOYEES
ALTERNATIVE 3- PROVIDING FLEXIBLE WORK TIME
Year | 1 | 2 | 3 | Total | |
Investment | |||||
Software required for Psychometric tests, trend analysis, etc., | 100000 | 5000 | 5000 | 110,000 | |
Total investment | 100,000 | 5000 | 5000 | 110,000 | |
0 | |||||
Operating cost | 0 | ||||
Training and Development Cost | 20,000 | 20,000 | 20,000 | 60,000 | |
Total cost | 120,000 | 25,000 | 25,000 | 170,000 | |
Year | 1 | 2 | 3 | Total | |
Benefits | 440,000 | 530,000 | 740,000 | 1,710,000 | |
Net profit | 320,000 | 505,000 | 715,000 | 1,540,000 | |
Cost-benefit ratio | 13.45 | ||||
Cost-benefit ratio =(benefitsoperating Costs)/investments = 13.45 | |||||
NET PRESENT VALUE CALCULATION | |||||
Year | 1 | 2 | 3 | Total | |
Net profit | 320,000 | 530,000 | 740,000 | ||
Discount rate | 20% | 20% | 20% | ||
Discounted amount | 207,792 | 223,477 | 202,614 | 633,884 | NPV |
Payback Period | 1 |
ALTERNATIVE 2- RECOGNIZING AND REWARDING EMPLOYEES:
Year | 1 | 2 | 3 | Total | ||||
Investment | ||||||||
Purchasing new schemes | 300000 | 300000 | 300000 | 900,000 | ||||
Total investment | 300,000 | 300000 | 300000 | 900,000 | ||||
0 | ||||||||
Operating cost | 0 | |||||||
Funds for Competitive Perks | 50,000 | 60,000 | 80,000 | 190,000 | ||||
Total cost | 350,000 | 360,000 | 380,000 | 1,090,000 | ||||
Year | 1 | 2 | 3 | Total | ||||
Benefits | 550,000 | 750,000 | 900,000 | 2,200,000 | ||||
Net profit | 200,000 | 390,000 | 520,000 | 1,110,000 | ||||
Cost-benefit ratio | 1.02 | |||||||
Cost-benefit ratio =(benefitsoperating Costs)/investments = 1.02
Net present value with a payback period | ||||||||
Discount calculation | ||||||||
Year | 1 | 2 | 3 | Total | ||||
Net profit | 200,000 | 390,000 | 520,000 | |||||
Discount rate | 20% | 20% | 20% | |||||
Discounted amount | 166,666.67 | 270,833.33 | 300,925.93 | 738,425.93 | NPV | |||
Payback Period | 1 | |||||||
ALTERNATIVE 3- PROVIDING FLEXIBLE WORK TIME:
MOA - MULTIPLE OBJECTIVE ANALYSIS
Alternatives | Improved Employee Satisfaction | Increased productivity | Team effectiveness | Retention of workforce | Average employee tenure | |
1) Modifying the hiring process | Medium | Medium | High | Medium | Medium | 5 months |
2) Recognizing and rewarding employees | High | High | Medium | High | High | 3 months |
3) Providing flexible work time | Medium | Medium | Low | Medium | Medium | 2 months |
Alternatives | Improved Employee Satisfaction | Increased productivity | Team effectiveness | Retention of workforce | Average employee tenure | |
1) Modifying the hiring process | 0.6 | 0.5 | 0.8 | 0.7 | 0.7 | 0.2 |
2) Recognizing and rewarding employees | 0.9 | 0.9 | 0.8 | 0.9 | 0.9 | 0.6 |
3) Providing flexible work time | 0.7 | 0.6 | 0.5 | 0.7 | 0.6 | 0.7 |
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