The objective of this study was to determine which projects a hospital corporation could add to their portfolio for the next fiscal year while staying within a $950,000 budget. The hospital plans to use their 20-person programmer team without hiring any additional employees.

Design: The programmers required, capital required, and estimated NPV(Net Present Value) for projects 1-7 were all pulled from the proposals presented to the hospital. Also, project 2 and 6 required specialized programming skills and only 1 team members know how to do this. Therefore, only one of these projects can be selected.

Which projects should be chosen to add to the hospitals portfolio, staying within the above stated parameters?

Project               Programmers Req.                        Capital Req.                        Estimated NPV

1                                    7                                                       $250                                        $650

2                                    6                                                       $175                                        $550

3                                    9                                                       $300                                        $600

4                                    5                                                       $150                                         $450

5                                    6                                                       $145                                         $375

6                                    4                                                       $160                                          $525

7                                    8                                                       $325                                          $750

Answer rating: 100% (QA)

Project 1 7 programmers 50hr 350day x 250 days 87500 NPV 87500 650 7... View the full answer