The firm is looking to invest (in Year 0) in the design and development of an...
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The firm is looking to invest (in Year 0) in the design and development of an e-bike docking station for which a Return on Investment (ROI) of 30% is desired by the firm which anticipates an annual income of 6,000 (where N is the last non-zero digit of your student id) for Years 1 through 3: a) You are asked to determine if additional product features can be included by examining the project financials (starting with cumulative cash flows). Each design feature takes 10 weeks (each of 5 working days) to develop and requires a team of 3 to 6 developers with a labour rate of 150/day: i) Given that the development costs of the MVP are 80,000: examine the financial implications of including some development work for additional features. What do you propose? ii) Is your project proposal worth doing if you take into account the 'Time Effect of Money' (10% discount factor)? The firm is looking to invest (in Year 0) in the design and development of an e-bike docking station for which a Return on Investment (ROI) of 30% is desired by the firm which anticipates an annual income of 6,000 (where N is the last non-zero digit of your student id) for Years 1 through 3: a) You are asked to determine if additional product features can be included by examining the project financials (starting with cumulative cash flows). Each design feature takes 10 weeks (each of 5 working days) to develop and requires a team of 3 to 6 developers with a labour rate of 150/day: i) Given that the development costs of the MVP are 80,000: examine the financial implications of including some development work for additional features. What do you propose? ii) Is your project proposal worth doing if you take into account the 'Time Effect of Money' (10% discount factor)?
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Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
Posted Date:
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