MGMT627 PROJECT MANAGEMENT Assignment No. 1 Solution Fall 2014

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MGMT627 PROJECT MANAGEMENT Assignment No. 1 Solution Fall 2014


Case:
A newly established company has been proposed two projects, Project X and Project Y. The cost
of Project X is expected to be Rs. 275000 and estimated annual net cash flow is Rs. 70000. For
Project Y, cost is Rs. 175000 and annual net cash flow is Rs. 50000. The management of
company is very keen to success through best cash flows and wants to recover cost within
minimum time.
Question:
Keeping in view the given information, which project would you recommend for the company?
Use an appropriate Numeric Model for project selection and justify your recommendation.
Instructions:
• First of all, in this assignment, identify a Numeric Model to be used
• Apply the identified model and calculate answer
• Make a decision and recommend a project on the basis of your calculations