Question: PART B-Scenario Analysis Read the project scenario and answer each of the questions (30 points, plus a 5 point bonus question) Scenario: You are the

 PART B-Scenario Analysis Read the project scenario and answer each of

the questions (30 points, plus a 5 point bonus question) Scenario: You

PART B-Scenario Analysis Read the project scenario and answer each of the questions (30 points, plus a 5 point bonus question) Scenario: You are the project manager developing version 1 of a new software product for your company. The 4 year project plan calls for a 6-month agile development phase, with 6 iterations of 1 month each; the cost of your team is $30,000 per month. The next 6 months will be devoted to marketing, building a product support capability, and developing the sales and distribution channels, with a total cost of $90,000. At the start of year 2, the product will be launched and begin generating revenue, which is forecast as follows: Year 2 Revenue $15,000/month $40,000/ month $30,000/month 4 After 4 years, the product will be replaced by version 2 and will not generate any further revenue List the cash flows (both positive and negative) for each of the 4 years in the project, starting with year 1 (the development year) through year 4. Also calculate the business value of the project, based on the net cash flow. (5 points) 1. . @, "1 For each alternative, list the cash flow for each of the 4 years (both positive and negative), along with the net cash flow (total the cash flows). Please note that a delay in the project implies that 1) revenue will start later than planned, and 2) all revenue after year 3 will be lost. (15 points, 5 for each alternative) 3

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