Software Project Management20795 marksNumerical: Project selection cash flowEconomic analysis
Which project would you choose from following projects and why?
Which project would you choose from following projects and why?
$$\begin{array}{|c|c|c|}\hline \text{Year} & \text{Project A} & \text{Project B} \ \hline 0 & -40,000 & -80,000 \ 1 & 5,000 & 2,000 \ 2 & 15,000 & 10,000 \ 3 & 5,000 & 70,000 \ 4 & 40,000 & 50,000 \ 5 & 50,000 & 50,000 \ \hline \end{array}$$
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Year Project A Project B ---------------------------- 0 -40,000 -80,000 1 5,000 2,000 2 15,000 10,000 3 5,000 70,000 4 40,000 50,000 5 50,000 50,000 Note: No discount rate is provided, so discounted methods (NPV) cannot be computed. We use the Payback Period method and total net return. --- Year ...