Question: Common techniques for selecting projects include focusing on broad organizational needs, categorizing projects, performing financial analyses, developing weighted scoring models, and using balanced scorecards. Perform
Common techniques for selecting projects include focusing on broad organizational needs, categorizing projects, performing financial analyses, developing weighted scoring models, and using balanced scorecards. Perform a financial analysis for Project A. Assume the projected costs and benefits for this period are spread over four years as follows: Estimated costs are GH 200,000 in year 1 and GH 30,000 each year in years 2, 3 and 4. Estimated benefits are GH 90,000 in year 1 and GH 350,000 each year in years 2, 3 and 4. Use a 10% discount rate and round the discount factors to two decimal places. Calculate the Net Present Value (NPV), Return on Investment (ROI) and year in which payback occurs. In addition, write a paragraph explaining whether you could recommend investing in this project, based on your financial analysis. IT Project Management
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