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    A Possible Set of Projects That Can Be Taken Up: Option 1 Option 2

    Uploaded by

    Shubham Gupta
    This document analyzes 6 potential project options for a company based on development hours required, costs, revenue projections, net present value (NPV), and workforce requirements. Option 5 has the highest NPV of $6.78 million and would require 1875 hours. Hiring one additional employee to take on Option 5 and other high ranking options could improve the overall NPV by $1.73 million, even after accounting for the $130,000 in additional costs. Therefore, hiring one more employee is recommended to realize additional gains.

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    A Possible Set of Projects That Can Be Taken Up: Option 1 Option 2

    Uploaded by

    Shubham Gupta
    132 views8 pages
    This document analyzes 6 potential project options for a company based on development hours required, costs, revenue projections, net present value (NPV), and workforce requirements. Option 5 has the highest NPV of $6.78 million and would require 1875 hours. Hiring one additional employee to take on Option 5 and other high ranking options could improve the overall NPV by $1.73 million, even after accounting for the $130,000 in additional costs. Therefore, hiring one more employee is recommended to realize additional gains.

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    Project Managment case

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    Handstar

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    This document analyzes 6 potential project options for a company based on development hours required, costs, revenue projections, net present value (NPV), and workforce requirements. Option 5 has the highest NPV of $6.78 million and would require 1875 hours. Hiring one additional employee to take on Option 5 and other high ranking options could improve the overall NPV by $1.73 million, even after accounting for the $130,000 in additional costs. Therefore, hiring one more employee is recommended to realize additional gains.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    132 views8 pages

    A Possible Set of Projects That Can Be Taken Up: Option 1 Option 2

    Uploaded by

    Shubham Gupta
    This document analyzes 6 potential project options for a company based on development hours required, costs, revenue projections, net present value (NPV), and workforce requirements. Option 5 has the highest NPV of $6.78 million and would require 1875 hours. Hiring one additional employee to take on Option 5 and other high ranking options could improve the overall NPV by $1.73 million, even after accounting for the $130,000 in additional costs. Therefore, hiring one more employee is recommended to realize additional gains.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 8

    Development hours required

    Cost ($52 per hour)


    Revenue
    First Year
    Second Year
    Third Year
    NPV
    Ranks (NPV basis)

    Current headcount of developers


    Annual work hours per employee
    Total man hours available

    Option 1
    1250
    -65000

    Option 2
    400
    -20800

    750000
    675000
    607500
    $ 1,575,155.23 $
    4

    250000
    262500
    275625
    607,862.11
    6

    4
    2500
    10000

    A possible set of projects that can be taken up


    Option
    Option
    Option
    Option

    5
    6
    1
    2

    Rank
    1
    2
    4
    6

    Workforce utilization

    Option 3
    750
    -39000

    Option 4
    2500
    -130000

    Option 5
    1875
    -97500

    Option 6
    6250
    -325000

    500000
    1000000
    2500000
    1300000
    525000
    1100000
    2875000
    1365000
    551250
    1210000
    3306250
    1433250
    $ 1,218,324.22 $ 2,501,024.51 $ 6,779,898.70 $ 2,944,042.97
    5
    3
    1
    2

    No of hrs reqd.
    1875
    6250
    1250
    400
    9775
    98%

    Options
    1
    2
    3
    4
    5
    6

    Remarks
    Integration of calender and e-mail
    Expense report
    Portfolio tracking system
    Spreadsheet Program
    Web Browser
    Trip Planner

    Obtaining leadership position


    Use of internet
    NPV
    Ranks (NPV basis)

    Option 1 Option 2 Option 3 Option 4


    Moderate
    High
    High
    Moderate
    Moderate
    Low
    Moderate
    No
    1575155.2 607862.1 1218324.2 2501024.5
    4
    6
    5
    3

    Criteria
    Weight
    NPV
    50%
    Leadership position
    25%
    Internet use
    25%
    Weighted average score
    Rank

    Option 1 Option 2 Option 3


    0.232327 0.0896565 0.1796965
    0.67
    1
    1
    0.67
    0.33
    0.67
    0.451164 0.3773283 0.5073483
    4
    5
    3

    Option 5 Option 6
    Low
    Low
    High
    High
    6779899 2944043
    1
    2

    Option 4 Option 5 Option 6


    0.368888
    1 0.434231
    0.67
    0.33
    0.33
    0
    1
    1
    0.351944
    0.8325 0.549616
    6
    1
    2

    Scores on basis of importance


    Importance Score out of 100
    High
    1
    Moderate
    0.67
    Low
    0.33
    No
    0

    Possibility 1

    Possibility 2

    Projects taken with 4 employees


    Rank No of hrs reqd. NPV
    Option 5
    1
    1875
    6,779,898.70
    Option 6
    2
    6250
    2,944,042.97
    Option 1
    4
    1250
    1,575,155.23
    Option 2
    6
    400
    607,862.11
    Total
    9775
    ###
    Workforce utilization
    98%

    Option 5
    Option 4
    Option 1
    Option 3
    Option 2
    Total
    Workforce Utilization

    Rank
    1
    3
    4
    5
    6

    No of hrs reqd. NPV


    1875
    6,779,898.70
    2500
    2,501,024.51
    1250
    1,575,155.23
    750
    1,218,324.22
    400
    607,862.11
    6775
    ###
    68%

    By seeing NPV possibility 2 is better

    Development hours required


    NPV
    Ranks (NPV basis)

    Option 1
    1250
    1,575,155.23
    4

    If additonal man power is hired


    New Manhours
    12500
    Additional cost incurred
    130000

    Option 2
    Option 3
    400
    750
    607,862.11 1,218,324.22
    6
    5

    Projects

    Option 5
    Option 6
    Option 4
    Option 1
    Option 2
    Total
    Improvement in NPV by
    Additional Co
    Net Be

    As net benefits by hiring an employee are positive, hence the organizat


    to realize additional gains

    Option 4
    2500
    2,501,024.51
    3

    Option 5
    1875
    6,779,898.70
    1

    Option 6
    6250
    2,944,042.97
    2

    Projects taken with 5 employees


    Rank
    No of hrs reqd. NPV
    1
    1875
    6,779,898.70
    2
    6250
    2,944,042.97
    3
    2500
    2,501,024.51
    4
    1250
    1,575,155.23
    6
    400
    607,862.11
    14,407,983.51
    provement in NPV by hiring one employee
    1,725,718.75
    Additional Cost incurred
    130,000.00
    Net Benefits
    1,595,718.75

    hence the organization should hire one more employee

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