Plan of attack include discussion over required information for calculations, calculations themselves, and how the final analysis will flow together Discussion on relevance of four (4) scenarios discuss what each section is, and how each section builds and improves upon the previous, as well as why such evolution is important in go/kill decision gates Discussion on important sections from the text where did you gain the technical skills, reasoning skills, and overall background knowledge required for this assignment (include proper citations, page numbers, etc. according to APA formatting requirements) Discussion on likely outcomes as your analysis evolves, what are the likely changes you will see in the final rankings and decision (include the data that will drive changes in the rankings, and why these data are important drivers in financial decision making) Scenario 1 NPV, Business as Usual Eliminate the Negative Projects The team has been working throughout the Pre-development stage in order to get an understanding of the present value of each of the (9) projects by understanding market pricing and the position within the market of each of the prospective projects, among other things. This analysis has given the team accurate information surrounding the overall development costs and costs to commercialize for each project as well. As a part of your normal business strategy, prepare a report analyzing the net present value of each project, rank those projects, and provide a Go/Kill recommendation for each. Scenario 2 NPV PI, A New Ranking Strategy with a Budget $25M Budget As your company looks to manage resources, your director wants to understand how you can maximize your Bang-for-buck on the work your team is doing, and has asked you to add a NPV productivity analysis to your Go/Kill decision process. Additionally, he has capped you at $25M. Prepare a report analyzing the NPV PI of each project, rank those projects, and provide a Go/Kill recommendation for each, maintaining your $25M development budget. Maximize the NPV of your portfolio using this method. Scenario 3 ECV PI, Understanding The Expected Commercial Value $25M Budget Your director is interested in understanding the expected commercial value method and how it might impact investment decisions. He also wants to maximize the bang for buck so he has asked you to add the expected commercial value and ECV PI to your analysis. You are able to do this because your team has worked hard to understand the likelihood of commercial and technical success in each project. Prepare a report analyzing the ECV PI of each project, rank those projects, and provide a Go/Kill recommendation for each, maintaining your $25M development budget. Maximize the ECV of your portfolio using this method. Scenario 4 ECV PI, A Trimmed Budget, and Modified Risk $17.5M Budget, Minimize Risk Your director, given the ability to implement risk into the decision process, wants to evaluate one additional scenario. The VP mention in his staff meeting last week that the market is changing and he may be implementing a 30% reduction in budgets across the company. Assuming this information to be true, your team has created a scenario based on the changing market that has updated rick assessments for both the probability of commercial and technical success. Using this information, prepare a report analyzing the ECV PI of each project, rank those projects, and provide a Go/Kill recommendation for each, maintaining your $25M development budget. Maximize the ECV of your portfolio using this method and new data. Compare and contrast each of the scenarios and provide a final suggestion on the type of analysis that should be completed AND what the decision is for each project Scenario-1 Present value Development cost commercialization cost Net present value Ranking Decision Zulu Alpha Tango Beta Sierra Echo Romeo Oscar Lima Scenario-2 Scenario-2 Net Present value Development cost NPV Productivity index Sum of Development costs Ranking Decision Zulu Alpha Tango Beta Sierra Echo Romeo Oscar Lima Scenario-3 Present value Development cost commercialization cost Probability of commercial success Probability of technical success Value if technical failure Value if commercial failure Expected value before commercialization Expected value in development Expected commercial value ECV PI sum development cost ranking decision Zulu Alpha Tango Beta Sierra Echo Romeo Oscar Lima Scenario-4 Present value Development cost commercialization cost Probability of commercial success Probability of technical success Value if technical failure Value if commercial failure Expected value before commercialization Expected value in development Expected commercial value ECV PI sum development cost ranking decision Zulu Alpha Tango Beta Sierra Echo Romeo Oscar Lima Points Breakdown Worth 30 points 2 pts for well flowing outline 4 pts for plan of attack 12 pts for discussion over relevance of four (4) scenarios 3 pts for discussion over likely outcomes 4 pts for discussion over relevant sections from the text 5 pts proper format BONUS: 5 pts maximum for discussion over what is missing from this Go to Development Gate analysis