Q1) ZU decided to have a mobile application to enhance student engagement and offer physical and mental health support to the student body. The estimated project budget is 2,000,000 AED and it is expected to be fully implemented in less than 10 months. You have been assigned as a Project Manager for this Project.

You are required to:

1. Create a project charter for this project.
2. List three potential risks that the project manager should take into account for that project.

Note: this is a hypothetical problem and project. Make reasonable assumptions when needed.

Q2) As a member in the project selection team of a company, you are required to analyze the following two projects using NPV (Net Present Value) and ROI (Return on investment).

Details of the two projects are shown as in Tables 1 and 2:

Project A	Year 1	Year 2	Year 3	Year 4
Benefits	$0	$3,000	$3,000	$5,000
Costs	$3,000	$3,000	$1,000	$2,000

Table 1

Project B	Year 1	Year 2	Year 3	Year 4
Benefits	$1,000	$3,000	$4,000	$6,000
Costs	$2,000	$3,000	$2,000	$4,000

Table 2

1. Assume that the discount rate is 12% and the discount cost start in Year 1. Calculate the NPV for both Project A and Project B.
2. Based on (a), which project do you recommend?
3. What is the major shortcoming of using NPV or other financial metrics in assessing projects?