PJM310 Colorado State Project Management and Net Present Value Paper
Business Finance
Required
- Chapter 2 in Project Management: A Strategic Managerial Approach
- Chapter 2 PowerPoint from Project Management: A Strategic Managerial Approach
- Oueslati, A. (2016). The added value of the project selection process. Journal of Defense Resources Management, 7(1), 75-84.
Recommended
- Drouin, N. (2014).Standing on the shoulders of strategic management giants to advance organizational project management. International Journal of Managing Project in Business 7(1), 61—77.
- Frye, K. (2017, October 3). Introduce net present value and internal rate of return. [Lynda.com video file].
- Fry, K. (2017, October 3). Calculate the net present value of an investment. [Lynda.com video file].
- Fry, K. (2017, October 3). Calculate net present value given irregular inputs. [Lynda.com video file].
- Kopmann, J., Kock, A., Killen, C. P., & Gemünden, H. G. (2017).The role of project portfolio management in fostering both deliberate and emergent strategy. International Journal of Project Management, 35(4), 557-570.
Option #1: NPV for 5-Year Project
For this exercise, you need to calculate the NPV for a project described below. Make sure you study the “Numeric Models: Profit/Profitability” section in Chapter 2 of the textbook before trying to solve the problem. You are the manager of a construction company with a five-year project that has a projected net cash flow of $25,000, $35,000, $45,000, $20,000 and $15,000. Implementation costs are $50,000. The company has a required rate of return of 20%. Compute the discounted cash flow and determine the NPV. Include your calculations in an appendix after the references page. Include information on what projected net cash flow, discounted cash flow and NPV are, why they are useful in project selection, and, given the numbers, if this example project meets the company requirements, and why or why not.
Optional Resources
Review any of the following videos for additional information on how to calculate NPV:
- Calculate the Net Present Value of an Investment (Links to an external site.)
- Introduce Net Present Value and Internal Rate of Return (Links to an external site.)
Submission Requirements
- Prepare a 3- to 4-page paper (not including the required title and reference pages and the appendix) detailing and compiling the specifics to items above.
- Support your paper with a minimum of two current (published in the most recent five years) scholarly sources from the CSU-Global Library, in addition to any course textbooks or lecture material you decide to use.
- Format your entire paper according to the CSU-Global Guide to Writing & APA (Links to an external site.).
- Be clear, concise, and focused. Be sure to organize your writing properly and include an introduction; headings/subheadings for the body of your work; analysis and recommendations (if applicable); a conclusion; list of references; and an appendix.
Option #2: Weighted Scoring Matrix
For this exercise, you need to assess a project selection matrix in a case described below. Make sure you study the “Numeric Models: Scoring” section (Table B and Figure A, in particular) in Chapter 2 of the textbook before trying to solve the problem. You are the person responsible for ordering the following 10 telecommunications projects, all of which support the new 5G initiative. Using the scoring matrix and the weights provided, which project would you rate highest (the first to implement, next, and so on until they are listed from 1 to 10). Your matrix should be included in an appendix after the references page. Describe what a weighted score matrix is, how it is used, and how you reached the conclusions you did.
Supports the business strategy to move to 5G |
Urgency in being first to market to win market share |
5G will drive new ancillary product sales |
Will cause customers to move from current provider to us |
Maintenance costs will be reduced |
|
Weight |
0.02 |
0.05 |
0.025 |
0.03 |
0.01 |
Project 1 |
3 |
2 |
4 |
9 |
4 |
Project 2 |
3 |
8 |
7 |
2 |
5 |
Project 3 |
4 |
2 |
7 |
3 |
5 |
Project 4 |
7 |
5 |
4 |
2 |
4 |
Project 5 |
2 |
5 |
5 |
2 |
8 |
Project 6 |
3 |
3 |
1 |
4 |
8 |
Project 7 |
6 |
7 |
2 |
3 |
7 |
Project 8 |
9 |
2 |
1 |
1 |
2 |
Project 9 |
1 |
6 |
3 |
1 |
7 |
Project 10 |
1 |
6 |
1 |
6 |
7 |
Submission Requirements
- Prepare a 3- to 4-page paper (not including the required title and reference pages and the appendix) detailing and compiling the specifics to items above.
- Support your paper with a minimum of two current (published in the most recent five years) scholarly sources from the CSU-Global Library, in addition to any course textbooks or lecture material you decide to use.
- Format your entire paper according to the CSU-Global Guide to Writing & APA (Links to an external site.).
- Be clear, concise, and focused. Be sure to organize your writing properly and include an introduction; headings/subheadings for the body of your work; analysis and recommendations (if applicable); a conclusion; list of references; and an appendix.
Rubric
PJM310 Mod 2 CT
Criteria | Ratings | Pts | ||||
---|---|---|---|---|---|---|
This criterion is linked to a Learning Outcome Requirements |
|
20.0 pts |
||||
This criterion is linked to a Learning Outcome Content |
|
15.0 pts |
||||
This criterion is linked to a Learning Outcome Critical Analysis |
|
15.0 pts |
||||
This criterion is linked to a Learning Outcome Demonstrates college-level proficiency in organization, grammar and style |
|
10.0 pts |
||||
This criterion is linked to a Learning Outcome Demonstrates proper use of APA style |
|
10.0 pts |
||||
Total Points: 70.0 |