Scribd Logo
Upload

Welcome to Scribd!

  • 132 views

    A Possible Set of Projects That Can Be Taken Up: Option 1 Option 2

    Uploaded by

    Shubham Gupta
    This document analyzes 6 potential project options for a company based on development hours required, costs, revenue projections, net present value (NPV), and workforce requirements. Option 5 has the highest NPV of $6.78 million and would require 1875 hours. Hiring one additional employee to take on Option 5 and other high ranking options could improve the overall NPV by $1.73 million, even after accounting for the $130,000 in additional costs. Therefore, hiring one more employee is recommended to realize additional gains.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    A Possible Set of Projects That Can Be Taken Up: Option 1 Option 2

    Uploaded by

    Shubham Gupta
    132 views8 pages
    This document analyzes 6 potential project options for a company based on development hours required, costs, revenue projections, net present value (NPV), and workforce requirements. Option 5 has the highest NPV of $6.78 million and would require 1875 hours. Hiring one additional employee to take on Option 5 and other high ranking options could improve the overall NPV by $1.73 million, even after accounting for the $130,000 in additional costs. Therefore, hiring one more employee is recommended to realize additional gains.

    Original Description:

    Project Managment case

    Original Title

    Handstar

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document analyzes 6 potential project options for a company based on development hours required, costs, revenue projections, net present value (NPV), and workforce requirements. Option 5 has the highest NPV of $6.78 million and would require 1875 hours. Hiring one additional employee to take on Option 5 and other high ranking options could improve the overall NPV by $1.73 million, even after accounting for the $130,000 in additional costs. Therefore, hiring one more employee is recommended to realize additional gains.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    132 views8 pages

    A Possible Set of Projects That Can Be Taken Up: Option 1 Option 2

    Uploaded by

    Shubham Gupta
    This document analyzes 6 potential project options for a company based on development hours required, costs, revenue projections, net present value (NPV), and workforce requirements. Option 5 has the highest NPV of $6.78 million and would require 1875 hours. Hiring one additional employee to take on Option 5 and other high ranking options could improve the overall NPV by $1.73 million, even after accounting for the $130,000 in additional costs. Therefore, hiring one more employee is recommended to realize additional gains.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 8

    Development hours required

    Cost ($52 per hour)


    Revenue
    First Year
    Second Year
    Third Year
    NPV
    Ranks (NPV basis)

    Current headcount of developers


    Annual work hours per employee
    Total man hours available

    Option 1
    1250
    -65000

    Option 2
    400
    -20800

    750000
    675000
    607500
    $ 1,575,155.23 $
    4

    250000
    262500
    275625
    607,862.11
    6

    4
    2500
    10000

    A possible set of projects that can be taken up


    Option
    Option
    Option
    Option

    5
    6
    1
    2

    Rank
    1
    2
    4
    6

    Workforce utilization

    Option 3
    750
    -39000

    Option 4
    2500
    -130000

    Option 5
    1875
    -97500

    Option 6
    6250
    -325000

    500000
    1000000
    2500000
    1300000
    525000
    1100000
    2875000
    1365000
    551250
    1210000
    3306250
    1433250
    $ 1,218,324.22 $ 2,501,024.51 $ 6,779,898.70 $ 2,944,042.97
    5
    3
    1
    2

    No of hrs reqd.
    1875
    6250
    1250
    400
    9775
    98%

    Options
    1
    2
    3
    4
    5
    6

    Remarks
    Integration of calender and e-mail
    Expense report
    Portfolio tracking system
    Spreadsheet Program
    Web Browser
    Trip Planner

    Obtaining leadership position


    Use of internet
    NPV
    Ranks (NPV basis)

    Option 1 Option 2 Option 3 Option 4


    Moderate
    High
    High
    Moderate
    Moderate
    Low
    Moderate
    No
    1575155.2 607862.1 1218324.2 2501024.5
    4
    6
    5
    3

    Criteria
    Weight
    NPV
    50%
    Leadership position
    25%
    Internet use
    25%
    Weighted average score
    Rank

    Option 1 Option 2 Option 3


    0.232327 0.0896565 0.1796965
    0.67
    1
    1
    0.67
    0.33
    0.67
    0.451164 0.3773283 0.5073483
    4
    5
    3

    Option 5 Option 6
    Low
    Low
    High
    High
    6779899 2944043
    1
    2

    Option 4 Option 5 Option 6


    0.368888
    1 0.434231
    0.67
    0.33
    0.33
    0
    1
    1
    0.351944
    0.8325 0.549616
    6
    1
    2

    Scores on basis of importance


    Importance Score out of 100
    High
    1
    Moderate
    0.67
    Low
    0.33
    No
    0

    Possibility 1

    Possibility 2

    Projects taken with 4 employees


    Rank No of hrs reqd. NPV
    Option 5
    1
    1875
    6,779,898.70
    Option 6
    2
    6250
    2,944,042.97
    Option 1
    4
    1250
    1,575,155.23
    Option 2
    6
    400
    607,862.11
    Total
    9775
    ###
    Workforce utilization
    98%

    Option 5
    Option 4
    Option 1
    Option 3
    Option 2
    Total
    Workforce Utilization

    Rank
    1
    3
    4
    5
    6

    No of hrs reqd. NPV


    1875
    6,779,898.70
    2500
    2,501,024.51
    1250
    1,575,155.23
    750
    1,218,324.22
    400
    607,862.11
    6775
    ###
    68%

    By seeing NPV possibility 2 is better

    Development hours required


    NPV
    Ranks (NPV basis)

    Option 1
    1250
    1,575,155.23
    4

    If additonal man power is hired


    New Manhours
    12500
    Additional cost incurred
    130000

    Option 2
    Option 3
    400
    750
    607,862.11 1,218,324.22
    6
    5

    Projects

    Option 5
    Option 6
    Option 4
    Option 1
    Option 2
    Total
    Improvement in NPV by
    Additional Co
    Net Be

    As net benefits by hiring an employee are positive, hence the organizat


    to realize additional gains

    Option 4
    2500
    2,501,024.51
    3

    Option 5
    1875
    6,779,898.70
    1

    Option 6
    6250
    2,944,042.97
    2

    Projects taken with 5 employees


    Rank
    No of hrs reqd. NPV
    1
    1875
    6,779,898.70
    2
    6250
    2,944,042.97
    3
    2500
    2,501,024.51
    4
    1250
    1,575,155.23
    6
    400
    607,862.11
    14,407,983.51
    provement in NPV by hiring one employee
    1,725,718.75
    Additional Cost incurred
    130,000.00
    Net Benefits
    1,595,718.75

    hence the organization should hire one more employee

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy