Question

The following questions are meant to guide you in your analysis. They do not need to be specifically addressed in the executive summary. You may find these questions useful in formulating what you believe to be the major problems/issues. Do not feel compelled to limit your analysis to these. On your executive summary, remember the recommendations need to be solid, feasible and a brief implementation plan should be outlined (if needed-i.e. who, when) You should have an excel spreadsheet file to assist you.

a. Rank the projects on a purely economic basis.
b. What other metrics are worth considering? Will those measures rank the projects identically? Why or why not?
c. Rank the projects again based on any other considerations you believe to be important. Are the rankings identical, if so why or why not?
d. Which projects should Ms. Verdin recommend to the board for the 2021 capital budget?

Answer 1

To rank projects on a purely economic basis, consider factors like initial investment and potential return on investment. Other metrics to consider are the projects' impact on strategic goals and alignment with market trends. Consider other factors important to you to rank the projects again, then recommend the highest-ranked projects to the board.

Step-by-step explanation:

Ranking Projects and Making Recommendations

In order to rank the projects on a purely economic basis, you should consider factors such as the initial investment, expected revenues, and potential return on investment. Assign each project a score based on these factors and rank them accordingly.

Other metrics worth considering include the project's impact on the organization's strategic goals, its potential for long-term growth, and its alignment with market trends. These measures may not rank the projects identically because they take into account different aspects of the projects.

You can rank the projects again based on other considerations that you believe are important, such as the project's feasibility, alignment with the organization's values, and potential risks. The rankings may differ from the purely economic ranking because other factors come into play.

Based on the rankings from the previous steps, Ms. Vermin should recommend the projects that have the highest scores and align with the organization's goals and values to the board for the 2021 capital budget.

Excel Spreadsheet File

It is advisable to create an excel spreadsheet file to assist you in the analysis and ranking of the projects. You can input the relevant data for each project and use formulas to calculate the scores based on the different metrics. This will help you visualize the rankings and make informed recommendations.