Question
In: Operations Management
Two possible projects have beenidentified for potential selection (i.e., Project 1 or Project 2).These...
Two possible projects have been identified for potential selection (i.e., Project 1 or Project 2). These projects should be evaluated based on the following criteria: Strategic fit; Probability of technical success; Financial risk; Potential profit; Strategic leverage; and Recommendations. Using the weighted scoring model and the information provided below, determine which project you should pursue:
The weighted project score forProject 1 was calculated to be68.25 (you should check this value to verify that your method is correct).
Using the information, evaluate the following:
Weighted Score for Project 2 (to the “hundredth” decimal place). Please show your hand calculations forProject 2. NOTE: You may solve this problem manually. If you do, please show your calculations for Project 2 below. If you choose to use Excel, please upload your spreadsheet to Canvas.
Which project would you choose, and why?
Solutions
Expert Solution
Weighted Score for project 1 = (0.25*65 + 0.2*90 + 0.1*40 + 0.15*85 + 0.25*55 + 0.5*70)
= (16.25 + 18 + 4 + 12.75 + 13.75 + 3.5)
= 68.25
a. Weighted Score for project 2 = (0.25*90 + 0.2*65 + 0.1*80 + 0.15*55 + 0.25*75 + 0.5*80)
= (22.5 + 13 + 8 + 8.25 + 13.75 + 4)
= 69.5
b. I would choose project 2 because of the high weighted score for the same.
keosha answered 2 years agoRelated Solutions
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4 $12,000 $65,000
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6 $198,000 $15,000
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PROJECT
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PROJECT 2
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B....
2 POTENTIAL CAPITAL PROJECTS HAVE THE FOLLOWING ESTIMATED CASHFLOWS
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