The Case : Project Janus And Gemini

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Introduction The case is a clear illustration of the problem that arises from using multiple and mutually exclusive screening methods to select which project should be selected among a portfolio of projects. The projects being considered are Janus and Gemini. Janus is being proposed by the head of software development. On the other hand, project Gemini is being championed by the business applications organization. Problem Statement The problem is for Nova Western to select the right project which has the potential to reverse the downward trend in operating revenues over three quarters. In other words, the stakeholders of the software firm are looking for a promising project that will increase revenues to increase company profitability.…show more content…
The calculated NPVs for project Janus and Gemini is $60,995 and $ 25,695 respectively. Another fact that to consider is that if the company is looking for the project that pays back its investment the earlier, project Gemini should be selected because it breaks even the quickest. However, if the objective of the project is long-term, project Janus should be considered since it is still viable after three years. Its project lifecycle is 5 years while the project lifecycle for Gemini is 3 years. Another fact to look out for is that the scoring model uses potential profit as one of its criteria in evaluating and selecting one of the projects. The coincidence is that both projects Janus and Gemini have equal weighted scores of 9 for the potential profit criteria. This means that if the underlying selection goal for these projects is return on investment then the company will need another screening method to break the tie. In terms of realism, project Gemini is a clearer strategic fit for the company. The project is more in line with the company’s mission and strategies than project Janus. The question is whether this criterion is more important than financial impact given that the company will need a project that has the potential to reverse falling revenues to generate profit. Possible Solution to the Problem To resolve this project selection dilemma resulting from contradictory results of the

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