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There are 2 projects in the intake process. There is only enough financial capital available to do 1 of the 2, though it might later
There are 2 projects in the intake process. There is only enough financial capital available to do 1 of the 2, though it might later be possible to do the other one. The company is also concerned with cash flow. Finally, the organization has given a weight of 50 to project 1 and 60 for project 2, in terms of how likely each project might increase market penetration for these markets served by what each project provides. Knowing the above, and having the data in the table below, create a weighted scoring model (create it in a Spreadsheet, like MS-Excel, but post a screenshot of it into the MS-Word file you submit) to help the portfolio governance committee select a project, as well as to see the weighting info for the non-selected projects. Project 1 Rate of return = 10% Year 1 Projected net cash flow: $15,000 Cost to develop: $50,000 Year 2 $25,000 Year 3 $30,000 Project 2 Rate of return = 10% Year 1 $10,000 $48,000 Year 2 $30,000 Year 3 $26,000 Projected net cash flow: Cost to develop: a. b. Determine the NPV of each of the 2 projects Determine the payback period for each of the 2 projects (averaging the cash flows is acceptable here) Create Weighted Scoring Model (WSM) information similar in style, structure, and format to the following example from a different project: c. Criteria A B D E F G Weighted Project Scores Weight Project 1 25% 90 15% 70 15% 50 10% 25 5% 20 20% 50 10% 20 100% 56 Project 2 90 90 90 90 20 70 50 78.5 Project 3 50 50 50 50 50 50 50 50 Project 4 20 20 20 70 90 50 90 41.5 Weighted Score by Project Project 4 Project 3 Project 2 Project 1 0 20 40 60 80 100
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