Question
Jonny Gupta is a Project Manager for TOTAL Consultants. She has been asked to help choose one of the four potential project candidates. The management
Jonny Gupta is a Project Manager for TOTAL Consultants. She has been asked to help choose one of the four potential project candidates. The management used Payback Period Technique, ROI and NPV over 5 years at 5.5% for project selection. A. Renovating an apartment. The project involves making an investment of $200,000. Monthly rental returns of $4,800. B. Building a bridge. The project involves making an investment of $4,000,000. Quarterly returns via toll for the bridge of $150,000. C. Upgrading software platform. The project involves making an investment of $485,000. There will be Quarterly returns of $33,000. D. Building a new high school. The project involves making an investment of $900,000 while offering Free School tuition for the first two years. After 24 months, there will be monthly returns via school fees of $50,000. A) CALCULATIONS: (3 POINTS) Complete an assessment of each project. Which of the following projects should Jonny recommend to management and why based on the assessment of a combination of results? B) JUSTIFICATION: (2 POINTS)
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