Question
Your division at NetIt, a large networking company, has put together a project proposal to develop a new home networking router. The expected NPV of
Your division at NetIt, a large networking company, has put together a project proposal to
develop a new home networking router. The expected NPV of the project is $17.7 million, and
the project will require 50 software engineers. NetIt has a total of 190 engineers available, and
the router project must compete with the following other projects for these engineers:
How should NetIt prioritize these projects?
Project NPV ($ millions) Engineering Headcount
Router 17.7 50
Project A 22.7 47
Project B 8.1 44
Project C 14.0 40
Project D 11.5 61
Project E 20.6 58
Project F 12.9 32
Total 107.5 332
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