If you were to prioritize the criteria for a successful screening model, which of those criteria do you rank at the top of your priority list? Why?
2Q. What are the benefits and drawbacks of project checklists for screening alternatives?
3Q. How are financial models superior to other screening models? How are they inferior?
4Q
a. Profile Model. Assume the project profile model in Figure 3.10 in the attachment
Define the efficient frontier. The dotted lines represent the minimum return and the maximum risk that the company will accept. Which projects would be suitable for retaining and which should be dropped from the company’s portfolio? Why?
b. Discounted Payback. Your company is seriously considering investing in a new project opportunity but cash flow is tight these days. Top management is concerned about how long it will take for this new project to pay back the initial investment of $50,000. You have determined that the project should generate inflows of $30,000, $30,000, $40,000, $25,000, and $15,000 for the next five years. Your firm’s required rate of return is 15%. How long will it take to pay back the initial investment?
Part 2: Read the case study 4.3 - Problem with John in the attached document and answer all the three questions below with intext citations and references.
Questions:
1. As the team leader, you have weighed the pro’s and con’s of all options and prepared a presentation to management on how to address this problem. What do you suggest?
2. Consider each of the options, and develop an argument to defend your position for each option.
3. What specific leadership behaviors, mentioned in this chapter, are most relevant to addressing and resolving the problems with John?
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