Question: Your company has a two - step process for assessing projects. The first decision gate requires all projects to be profitable and feasible, given your
Your company has a twostep process for assessing projects. The first decision gate requires all projects to be profitable and feasible, given your resources and expertise. The companys expectations for rate of return on projects varies according to their category. The project categories, cash flow information for potential projects are described below.The second decision gate is a weighted scoring model for those that pass the financial and feasibility gate, based on the following decision criteria: profitability, strategic fit, resource availability, innovation, and ability to manage risks. The details for the second step are also provided below.a What is the payback period of projects D E and F marks b FindtheNPVofeachprojectmarksi Which of the projects would you fund if the decision is based ONLY on financial information? markii What other information would you need to make such a decision? Why? marksiii Wouldanorganizationevertakeonaprojectthatdoesnotmeettheirexpectationsfor return? If so why? marks
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