Project Selection Journal Guidelines
You are a project manager for a local company that is considering installing a new content management system. Your boss has asked you to do a net present value (NPV) analysis, calculate a benefit-to-cost ratio, and tell him what the payback period will be for this investment. After careful analysis, you have developed the table below. It outlines the benefits and investment costs for the next 5 years. Assuming your company's cost of capital is 10 percent, you are to determine:
1. The net present value of the project
2. The benefit-to-cost ratio
3. The payback period
|
Years
|
Benefits
|
Investment Costs
|
|
0
|
0
|
$10,000
|
|
1
|
$10,000
|
$20,000
|
|
2
|
$30,000
|
$20,000
|
|
3
|
$60,000
|
$50,000
|
|
4
|
$100,000
|
$50,000
|
|
5
|
$100,000
|
$50,000
|
Journals are private between the student and the instructor. Approach these activities as (a) an opportunity to reflect upon and apply what you learn each week based on the assigned readings, discussions, and activities, and (b) an opportunity to share your knowledge and expertise based on your educational and professional experiences in the past. As a successful professional, you will need good reflective and writing skills. Journal activities offer you the opportunity to further develop these skills. For more information about Blackboard blogs and journals, review these tutorials.