The project will be a success if the users who will

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The project will be a success if the users who will be the end-users of the system are fully and correctly trained in the correct environment - Trainer Correct training material available – Training House Training done in time to ensure the project goes life as scheduled – Project Manager The users should also be scheduled to ensure availability and training resources needs to be prepared accordingly – Instructor / The Customer Question 2 2.1 Calculate the Net Profit for each project. Project A 27 000 + 35 000 + 33 500 + 15 000 + 58 200 + 45 000 = 213 700 213 700 - 210 000 = R3700 Project B 100 000 + 50 000 + 100 000 + 120 000 + 5 000 + 15 000 = 390 000 390 000 - 350 000 = R40 000 2.2 Based on your calculation of the Net Profit, which project would you select and why? The project that I would select is Project 2 since it has the highest net profit between the 2 projects which equals R40 000 2.3 Calculate the Return on Investment (ROI) for each project. Project A Return of Investment (ROI) = average annual profit / Total Investment x 100 = 3700/6 / 210 000 x 100 = 617 / 210 000 x 100 = 0.30% Project B Return of Investment (ROI) = average annual profit / Total Investment x 100 = 40 000/6 / 350 000 x 100 = 6667 / 350 000 x 100 = 1.90%
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2.4 Based on your calculation of the individual Return on Investment (ROI) of each project in question 2 above, which project would you select to develop? I would select Project B as it’s got the highest return on investment equal to 1.90% 2.5 Calculate the Payback Period for each project.
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