Question

Your Division at Nashika Limited, a large networking company, has put together a project proposal to develop a new home networking router. The expected Net Present Value (NPV) of the project is K17.7 million, and the project will require 50 software engineers. Nashika has a total of 190 engineers available and the router project must compete with the following other projects for these engineers: Project NPV (K million) Engineering Headcount Router 17.7 50 Project A 22.7 47 Project B 8.1 44 Project C 14.0 40 Project D 11.5 61 Project E 20.6 58 Project F 12.9 32 How should Nashika prioritize these projects?

Answer 1

As per detail of the project given as

Name of Project	NPV	Manpower
K	17.7	50
A	22.7	47
B	8.1	44
C	14	40
D	11.5	61
E	20.6	58
F	12.9	32
	Total Manpower	332

As Company has limitation of manpower , can't exceeds from 190. In the situation project should be prioritize on the basis of performance efficiency, NPV / manpower ratio.

Name of Project	NPV	Manpower	NPV/Manpower (million/engineer)	priority rank
K	17.7	50	0.354	4
A	22.7	47	0.483	1
B	8.1	44	0.184
C	14	40	0.350
D	11.5	61	0.189
E	20.6	58	0.355	3
F	12.9	32	0.403	2
	Total Manpower to complete the four projects			187