2. a) Why Project Managers need to understand strategy? The Project Manager who does not understand the role their project plays in accomplishing the strategy of their organization tend to make some mistakes. What are those ? 2 b) You are the head of the project selection team. Your team is considering three different projects. Rate of return is 18% and inflation rate is 5 %. According to the NPV which one should be the first priority? Project A Project B Project C Year Initial Revenue Initial Revenue Initial Revenue Investment Stream Investment Stream Investment Stream 00 5,00,000 0 2,50.000 0 75000 0 01 50,000 75,000 15,000 02 2,50,000 75,000 25,000 03 3,50,000 75,000 50,000 04 50,000 50,000 05 1,50,000 5 c) The Custom Bike Company has set up a weighted scoring matrix for evaluation of potential projects. Below are three projects under consideration Strong Supports Urge 10% of sales Competition Fill Weighted sponsor business ncy from new market total products gap Weight 2.0 4.0 5.0 3.0 1.0 3.0 Project - 1 9 5 2 0 2 5 Project -2 3 7 2 0 5 1 Project - 3 6 8 2 3 6 8 Project - 4 1 0 5 10 6 9 Project - 5 3 10 10 1 8 0 Using the scoring matrix below, which project would you rate highest? Lowest? ii. If the weight for Urgency 5.0 to 4.0, will the project selection change? What are the three highest weighted project scores with this new weight? 3