Question: Using your Hybrid methodology, SCC would like you and you to complete the following project: Scope: The scope of the project consists of 9 applications
Using your Hybrid methodology, SCC would like you and you to complete the following project:
Scope: The scope of the project consists of 9 applications
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| Initial Development Cost (YR 0) | Year 1 Income | Year 2 Income | Year 3 Income | Year 4 Income | Year 5 Income |
| Application 1 | $ 350,000.00 | $ 65,000.00 | $ 74,750.00 | $ 89,700.00 | $ 94,185.00 | $ 95,126.85 |
| Application 2 | $ 275,000.00 | $ 52,000.00 | $ 62,400.00 | $ 68,640.00 | $ 70,012.80 | $ 71,413.06 |
| Application 3 | $ 500,000.00 | $ 75,000.00 | $ 90,000.00 | $ 220,000.00 | $ 220,000.00 | $ 220,000.00 |
| Application 4 | $ 250,000.00 | $ 120,000.00 | $ 75,000.00 | $ 80,000.00 | $ 120,000.00 | $ 120,000.00 |
| Application 5 | $ 300,000.00 | $ 130,000.00 | $ 143,000.00 | $ 145,860.00 | $ 160,446.00 | $ 170,072.76 |
| Application 6 | $ 450,000.00 | $ 82,000.00 | $ 94,300.00 | $ 95,243.00 | $ 96,195.43 | $ 100,043.25 |
| Application 7 | $ 750,000.00 | $ 230,000.00 | $ 287,500.00 | $ 301,875.00 | $ 316,968.75 | $ 323,308.13 |
| Application 8 | $ 550,000.00 | $ 325,000.00 | $ 325,000.00 | $ 93,330.00 | $ 100,796.40 | $ 103,820.29 |
| Application 9 | $ 250,000.00 | $ 65,000.00 | $ 85,800.00 | $ 88,374.00 | $ 93,676.44 | $ 95,549.97 |
Given the critical nature of the project, the company has developed a high-level budget and potential income for each application.
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Year 0 is the projected cost the company has estimated for the build of the component. This includes a 15% overhead cost for project management work
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Year 1-Year 5 is the amount of revenue the company has estimated for the product
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The Acceptable Rate of Return for all projects with the company is 10%
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