PartA.

1. The portfolio of projects is typically represented by compliance, strategic, and operations projects. What impact can this classification have on project selection?

2. Why should organization not rely only on ROI to select projects?

3. Discuss the pros and cons of the checklist versus the weighted factor methods of selecting projects.

PartB

4. Two new software projects are proposed to a young, start-up company. The Alpha project will cost $150,000 to develop and is expected to have annual net cash flow of $40,000. The Beta project will cost $200,000 to develop and is expected to have annual net cash flow of $50,000 . The company is very concerned about their cash flowUsing the payback period, which project is better from a cash flow standpoint ? Why?

5. A fiveyear project has a projected net cash flow of $15,000,$25,000,$30,000,$20,000 , and 515, 000 in the next five years. It will cost $50,000 to implement the project. If the required rate of retumis percent , conduct a discounted cash flow calculation to determine the NPV.