RATING Performance Criterion Service A Service B Service C 0.6 Capilal equipment investment required 0.8 0.3 Expected return on investment (ROI) 0.7 0.3 0.9 Compatibility with current 0.4 0.7 0.5 workforce skills Competitive advantage 1.0 0.4 0.6 Compatiblty with EPA requirements 0.2 0.5
RATING Performance Criterion Service A Service B Service C 0.6 Capilal equipment investment required 0.8 0.3 Expected return on investment (ROI) 0.7 0.3 0.9 Compatibility with current 0.4 0.7 0.5 workforce skills Competitive advantage 1.0 0.4 0.6 Compatiblty with EPA requirements 0.2 0.5
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
The Forsite Company is screening three ideas for new services. Resource constraints allow only one idea to be commercialized at the present time. The following estimates have
been made for the five performance criteria that management believes to be most important:
a. Calculate a total weighted score for each alternative. Use
a preference matrix and assume equal weights for each
performance criterion. Which alternative is best? Worst?
b. Suppose that the expected
assigned to each of the remaining criteria. (The sum of
weights should remain the same as in part (a).) Does
this modification affect the ranking of the three potential
services?
Transcribed Image Text:RATING
Performance Criterion
Service A Service B Service C
0.6
Capilal equipment
investment required
0.8
0.3
Expected return on
investment (ROI)
0.7
0.3
0.9
Compatibility with current
0.4
0.7
0.5
workforce skills
Competitive advantage
1.0
0.4
0.6
Compatiblty with EPA
requirements
0.2
0.5
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