PMP575_Patel_NumericProblems

# PMP575_Patel_NumericProblems - th Criteria According to the...

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Problem no.3 :- Time Period Cashflow -75000 1 20000 2 25000 3 30000 4 50000 \$75,501.54 \$501.54 Initial Cash Investment A 0 = 0 Rate k = 0.2 Discounted Cash Flow to Determine NPV (project) = A 0 + NPV function Value

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Problem no.6:- Time Period Cashflows - Most likely values 0 -65,000 1 20,000 2 25,000 3 30,000 4 35,000 \$68,267.75 \$3,268 The Initial investment \$65,000.00 1.05 Since Profitability Index > 1, project is acceptable hurdle Rate k = 0.2 Discounted Cash Flow to Determine NPV (project) = A 0 + NPV function Value Profitability Index = Total Present Value/ Initial Investment
Problem 9:- Category Weight METHOD Score A B C A B C Consulting Cost 20 1 2 3 20 40 60 Acquisition Time 20 2 3 1 40 60 20 Disruption 10 2 1 3 20 10 30 Cultural Difference 10 3 3 2 30 30 20 Skill Reduction 10 2 1 1 20 10 10 Implementation risk 25 1 2 3 25 50 75 Infrastructure 10 2 2 2 20 20 20 175 220 235 Total Score of i th Method S i = S ij W j where, S ij = total score of i th method at jth criteria Wj = weight of j

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Unformatted text preview: th Criteria According to the above justification using weighted score model, the Method C is to be chosen as its is the bestoption. Problem 11:-Category relative Weight Location of mall Score of ind 1 2 3 4 1 2 Class of Clientele 100 1 2 3 1 3 2 3 Rent 90 0.9 3 2 1 3 2.7 1.8 Indoor mall 95 0.86 3 1 3 1 2.57 0.86 Traffic volume 80 0.72 3 2 3 1 2.16 1.44 overall total weight for category 100 9.43 7.1 Weight in percentage Total Score of i th Mall = S ∑ ij W j S ij = total score of i th location at j th criteria W j = weight of j th category According to the above justification, using weighted score model, Nina should choose L best meets the criteria she is looking for. dividual mall 3 4 1 3 0.9 2.7 2.57 0.86 2.16 0.72 6.63 7.28 Location 1 , as it...
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## This note was uploaded on 11/08/2010 for the course MBA PMP 575 taught by Professor Drack during the Spring '10 term at RMU.

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PMP575_Patel_NumericProblems - th Criteria According to the...

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