Project Chicago Vs Project Europa

Finally, in order to complete a more accurate comparison between the two projects, we utilized the EANPV as the deciding factor. Under current accepted financial practice, NPV is generally considered the most accurate method of predicting the performance of a potential project. The duration of the projects is different, one lasts four years and one lasts six years. To account for the variation in time frames for the projects and to further refine our selection we calculated the EANPV to compare performance on a yearly basis.

The first project proposal is Match My Doll Clothing line expansion consisted of expanding matching doll and child’s clothing and accessories. The second project proposal is Design Your Own Doll by creating customizable “one of a kind” doll features through the company’s website. The project selection criteria would base on quantitative and qualitative analysis. The quantitative analysis would base on the evaluation of discounting cash flow forecasts to determining the Net Present Value (NPV), Internal Rate of Return (IRR), and the Payback period of each proposed project. The qualitative analysis would include the potential project value of the company’s overall strategy, innovation, key project risks, and the project interdependencies to the whole company.

1. Possibility of making almost 10 million in 10 years time with how they perceived low risk and high return opportunity.

Evaluating the risks, calculating the probability of success, and factoring in the projected profit from sales will provide a clearer NPV to be compared with other projects in the

b) The decision to invest in projects increases the shareholders value of the company. This is consistent with the growth and from the NPV criteria, positive NPV of projects increases the shareholder's value.

is given to the citizens that live in the US. This right as well as many

The paper is divided into three sections, the first of which will establish a timeline of events. This project background will serve as a case study for the analysis in the following section that will be structured such that each of the previously mentioned facets will be independently analyzed and contrasted with project management principles. Finally the paper will conclude with a summary of the analysis and recommendations based on

Along with the Benefit Measurement Method, Constrained optimization method can also be used which involves mathematical approach. Since this method involves the mathematical approach, several calculations are performed in order to take a decision to accept or reject the project. “Mathematical models, also known as Constrained Optimization Methods, are a category of project selection methods, which is a tool and technique of the Develop Project Charter process” (PMP, 2008). Cost-benefit analysis is one of the methods which fall into this category. All the positives and negatives of the project are taken into consideration and then the negatives are carefully excluded from the benefits. Different results are produced for the different projects. The most worthy and financially rewarding option are selected from these results. When employing this method, there are many things that are to be considered such as the impact of the decision on the development of the organization in the future, the length of time the equipment lasts and whether it is possible to do the cost control during the project.

A company the size of the Global Infrastructure Group has many options when considering a project selection process. Any project taken on by the company must align with its goal and corporate strategy. Morris and Jamieson (2004) and Dey (2006) argue that project portfolio management is a “bridge between strategy and operation” and enables organizations to transform the organization's vision into realities or successfully implement their corporate strategies (Khalili-Damghani & Tavana, 2014). In project selection, the company’s senior managers must establish strategic intent. Strategic intent will contain the company’s objectives and should result in a strategy map. Goals should be clear, realistic and measurable. Goals should also have an end state e.g. President Kennedy established a goal of landing a man on the moon within a decade. The Global Infrastructure Group’s senior managers should be leading by establishing a clear strategy and obtainable goals to get all projects focused on meeting these goals by aligning to the organization’s strategy. Once strategy and goals are defined, those involved in the project selection process should consider how the proposed project will align with the goals and strategy. Factors they should consider

My capstone project was to go to Chicago and to see many high quality art in art museum and murals/monuments in public in the city. It was also to study the diverse art culture of Chicago.

The positives of this project are that it has the highest NPV, highest total R&P sales, highest population, and highest percent of adults with four plus years of college. First, Whalen Court not only has the highest NPV but they have the greatest opportunity. If sales increase by 10% it would be over $16 million more than the prototype. Second, this projects sales could be by far the greater than the prototypes of any other projects. The 1st and 5th year sales equivalents would be over $52 and $69 million respectively. Compare this to the other projects and they are 10’s of millions more. Third, the Whalen Court project has the highest population at 632,000, which means they have the largest customer pool. Their population is almost three times greater than the second closest project. Lastly, this project has the highest percentage of adults with four plus years of college. This is very important because these are the customers Target is trying to attract the most. Now, there are some negatives of this project as well. First, the investment size is much greater than the typical prototype. It is actually 409% (Appendix 1) more than the prototype. The next closest project is only 31% more, which makes this project very concerning. Next, is the building cost versus the prototype. The project is for a lease of a building and the cost are very high compared to the other projects at over $15 million more than the prototype. Add in the fact that Target usually

The four measures were net present value (NPV), internal rate of return (IRR), the payback period and increases in earnings per share (EPS). Other strategic factors must be considered that are not reflected in the financial tests. James Fawn and his ICG analyst team must decide which project is the best value for the short-term and the long-term. Utilizing these financial hurdles and contemplating other strategic factors, Victoria Chemicals will choose the project that will give the firm the most value.

Without the ability to rank the projects based off of cash flows solely, we had to use some analytical criteria as a capital budgeting analyst to provide some thorough support and reasoning for how we ranked the four best projects. In this case we are only using quantitative considerations that we deem to be relevant and no other project characteristics are deciding factors in our selection of the best four projects. When coming up with our calculations to rank

There are many benefits can be expected from this project such as it will make over the calculated commercial proficiencies. It will be proved as very important deal by investing in the project. The project can bring more money once it done. The project team is very efficient so they can surely get more benefits.

4. Based on the information provided in the case, our group calculated the NPV for the project under both tax environment and tax-free condition, respectively, by using the excel spreadsheet and the NPV function. (For a detailed calculation of NPV, please refer to Appendix Under 15-yr.) According to our calculation, we have the following results: In the first case scenario, which the firm is in a tax environment (35% income tax), the NPV of the project equals to -$6,366,054.53