Discounted Cash Flow
Use the discounted cash flow to calculate the Net Profit Value. The initial investment is $200,000. The project has lasted 60 months and the average cash brought in from the project per year was $30,000. The inflation rate was 2% for the first 3 years and 5% for the next 2 years. The interest rate (required rate of return) was 12% (didn’t change).
Discounted Cash Flow (prob.2)
• The project had an initial investment of 300,000. It returned 35,000 per year. The project lasted 72 months. The first three years, the interest rate was 11% and the inflation was 3%. The next three years, the interest rate rose to 14% and the inflation rate to 7%. What is the NPV ?
Your Project
• Describe the selection model that you are using in your project (use matrix). • What should you do if after adding all the points by properly using the selection model, the option that you think is the best is not the winner ?
Functional/Project/Matrix Org.
• Under what type of organization are conflicts most common ? • Describe the advantages of this type of organization.
Environmental Project
• What selection models are not suited for environmental projects ? Explain ?
Primary Goal of a PM
• Performance • Cost • Time
Until Recently, projects in most firms were under the:
• • • • A) Matrix Organization B) Project Organization C) Functional Organization D) All of the Above
Small firms usually can’t afford to have projects under the:
• A) Matrix Organization • B) Project Organization • C) Functional Organization
Deming concluded that:
• 1) Managers rarely used statistics • 2) Managers rarely used statistics properly to find out what was going on right and wrong • 3) Managers were good at finding out who is being successful or not, but rarely good at finding out why.
Deming
• Was a fierce competitor that stimulated competition in the Japanese Industry • Deming was the MVP of Superbowl III • Deming had a great impact on the software industry • All of the above • None of the above