PROJECT MANAGEMENT(LL)W/CONNECT
7th Edition
ISBN: 9781260421415
Author: Larson
Publisher: MCG
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Chapter 2, Problem 7E
The Custom Bike Company has set up a weighted scoring matrix for evaluation of potential projects. Below are five projects under consideration.
a. Using the scoring matrix in the following chart, which project would you rate highest? Lowest?
b. If the weight for “Strong Sponsor” is changed from 2.0 to 5.0, will the project selection change? What are the three highest weighted project scores with this new weight?
c. Why is it important that the weights mirror critical strategic factors?
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The ABC Manufacturing Company has set up a weighted scoring matrix for evaluating some potential projects. Following are five projects under consideration.
Using the scoring matrix below which project would you rate highest? Lowest?
If the weight for “Sponsor Support” is changed from 2.0 to 5.0, will the project selection change? What are the three highest-weighted project scores with this new weight?
Why is it important that the weights mirror critical strategic factors?
Project Screening Matrix
Criteria
Weight
Project 1
Project 2
Project 3
Project 4
Project 5
Sponsor Support
2
9
3
6
1
3
Strategic Alliance
5
5
7
8
0
10
Urgency
4
2
2
2
5
10
Fills a market gap
3
0
0
3
10
1
Sales
3
2
5
6
6
8
Competition
1
5
1
8
9
0
7. The Custom Bike Company has set up a weighted scoring matrix for evaluation of
potential projects. Below are five projects under consideration.
a. Using the scoring matrix in the following chart, which project would you rate
highest? Lowest?
b. If the weight for "Strong Sponsor" is changed from 2.0 to 5.0, will the project
selection change? What are the three highest weighted project scores with this
new weight?
c. Why is it important that the weights mirror critical strategic factors?
The Quantum Leap Company has set up a weighted scoring matrix for evaluation of potential projects. Below are five projects under consideration. 1. Using the scoring matrix below, which project would you rate highest? Lowest?
2. If the weight for "Strong Sponsor'. is changed from 2.0 to 5.0. will the project selection change? what are the three highest weighted project scores with this new weight? 3. Why is it important that the weights mirror critical strategic factors?
4. Two new software projects are proposed to a young, start-up cornpany. The Alpha project vvill cost $150.000 to develop and is expect. to have annual net cash flow of $40,000. The Beta project will cost $200,000 to develop and is expected to have annual net cash flow of S50,000. The company is ve, concerned about their cash flow. Using the payback period, which project is better from a cash flow standpoint? Why? a. Assume that the rate of inflation is 644, use the Net Present Value (NM, aPProach to calculate PaYback…
Chapter 2 Solutions
PROJECT MANAGEMENT(LL)W/CONNECT
Ch. 2 - Describe the major components of the strategic...Ch. 2 - Explain the role projects play in the strategic...Ch. 2 - How are projects linked to the strategic plan?Ch. 2 - The portfolio of projects is typically represented...Ch. 2 - Why does the priority system described in this...Ch. 2 - Why should an organization not rely only on ROI to...Ch. 2 - Discuss the pros and cons of the checklist versus...Ch. 2 - You manage a hotel resort located on the South...Ch. 2 - Two new software projects are proposed to a young,...Ch. 2 - A five-year project has a projected net cash flow...
Ch. 2 - You work for the 3T company, which expects to earn...Ch. 2 - You are the head of the project selection team at...Ch. 2 - You are the head of the project selection team at...Ch. 2 - The Custom Bike Company has set up a weighted...Ch. 2 - What is our major problem?Ch. 2 - Identify some symptoms of the problem.Ch. 2 - What is the major cause of the problem?
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