Scenario 1 NPV, Business as Usual Eliminate the Negative Projects The team has been working throughout the Pre-development stage to get an understanding of the net present value (NPV) of each of the (9) projects. This required an analysis of market pricing and the position of each prospective project within the market. This analysis has given the team accurate information surrounding the overall development costs and the costs for commercialization of 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 optimize the work your team is doing, and has asked you to add an NPV productivity analysis to your Go/Kill decision process. Additionally, he has capped expenditures 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 Expected Commercial Value $25M Budget Your Director is interested in understanding the expected commercial value (ECV) method and how it might impact investment decisions. 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 mentioned 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 risk assessments for 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.