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