he Quantum Leap Company has set up a weighted scoring matrix for evaluation of potential projects. Below are five projects under consideration. 1. Using the scoring matrix below, which project would you rate highest? Lowest? 2. If the weight for "Strong Sponsor'. is changed from 2.0 to 5.0. will the project selection change? what are the three highest weighted project scores with this new weight? 3. Why is it important that the weights mirror critical strategic factors? 4. Two new software projects are proposed to a young, start-up cornpany. The Alpha project vvill cost $150.000 to develop and is expect. to have annual net cash flow of $40,000. The Beta project will cost $200,000 to develop and is expected to have annual net cash flow of S50,000. The company is ve, concerned about their cash flow. Using the payback period, which project is better from a cash flow standpoint? Why? a. Assume that the rate of inflation is 644, use the Net Present Value (NM, aPProach to calculate PaYback Pen!. for both Prole.. Wt. P'oiect would you now recommend? Why? b. in yo, estimation, which approach to calculating payback period is better? Explain your response. giving the pros aria cons of ea, J.,cac,. Criteria Strong Sponsor tpdrgrty Business Urgency Sale From new Competition i ill Maiket Weighted Total Weighted total Products Gap (a)

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The Quantum Leap Company has set up a weighted scoring matrix for evaluation of potential projects. Below are five projects under consideration. 1. Using the scoring matrix below, which project would you rate highest?
Lowest?

2. If the weight for "Strong Sponsor'. is changed from 2.0 to 5.0. will the project selection change? what are the three highest weighted project scores with this new weight?
3. Why is it important that the weights mirror critical strategic factors?

4. Two new software projects are proposed to a young, start-up cornpany. The Alpha project vvill cost $150.000 to develop and is expect. to have annual net cash flow of $40,000. The Beta project will cost $200,000 to develop and is expected to have annual net cash flow of S50,000. The company is ve, concerned about their cash flow. Using the payback period, which project is better from a cash flow standpoint? Why? a. Assume that the rate of inflation is 644, use the Net Present Value (NM, aPProach to calculate PaYback Pen!. for both Prole.. Wt. P'oiect would you now recommend? Why?
b. in yo, estimation, which approach to calculating payback period is better? Explain your response. giving the pros aria cons of ea, J.,cac,.
Criteria Strong Sponsor
tpdrgrty Business Urgency Sale From new Competition i ill Maiket Weighted Total Weighted total Products Gap (a)

b. In your estimation, which approach to calculating payback period is better? Explain your response, giving the pros and cons of each approach.
Criteria
Strong
Sponsor
Support Business
Strategy
Urgency
Sale From new
Products
Competition
Fill Market
Gap
Weighted Total
(a)
Weighted total
(b)
Weight
2
3
1
3
Project
9.
2
Project
Project
3
6.
8
6.
8.
Project
4
1
10
Project
10
10
1
8.
Evaluation
3,
9,
Transcribed Image Text:b. In your estimation, which approach to calculating payback period is better? Explain your response, giving the pros and cons of each approach. Criteria Strong Sponsor Support Business Strategy Urgency Sale From new Products Competition Fill Market Gap Weighted Total (a) Weighted total (b) Weight 2 3 1 3 Project 9. 2 Project Project 3 6. 8 6. 8. Project 4 1 10 Project 10 10 1 8. Evaluation 3, 9,
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