- Calculate NPV (Neatly organized – show all work, results and recommendations.)
- Calculate Weighted factors (Neatly organized – show all work, results and recommendations.) (see Notes below)
- Answer and justify your answer
#2 – Note: In terms of scoring the options on NPV, a score of 1 was assigned to the projects with NPVs less-than-or-equal-to 1.1 million dollars. Likewise, a score of 2 was assigned to projects with NPVs that were greater than 1.1 million dollars but less-than-or-equal-to 2.5 million dollars. Projects with NPVs greater than 2.5 million dollars were assigned a score of 3. For the other two criteria, projects with low probabilities were assigned a score of 1, moderate probabilities a score of 2, and high probabilities a score of 3. A spreadsheet for calculating the weighted scores is shown below.
