Project Management Email Response Choosing a Project In order to determine which of the three projects is best, it is important to conduct a feasibility study. That is done to take a careful look at each one of the projects offered and examine what they provide to the company in the future. Of course, it is not possible to know exactly what will happen, and there are only projections and assumptions that

Project Management Juniper Low Risk Project Cost Profit Palomino Medium Risk Project Cost Profit Stargazer High Risk Estimated Cost Profit All three projects are feasible from a financial standpoint because they all offer a decent return. The breakeven point for all three projects is greater than one year and less than two years. The largest return is to be found on the project with the highest risk associated with it; which is not surprising. Although the risk of completing this project on time

Project Management Determine which project might be implemented and why (e.g. feasibility study or breakeven analysis etc.) The project which has the potential to provide the greatest return is Stargazer. Using a feasibility study, this will offer the firm with a number of benefits that will help it to increase its bottom line results. This is occurring with the ROI rising by 56% in three years. Over seven years, is when the

The simplest of these is the return on investment. The three calculations are presented; it is assumed that Juniper does give 3 years of returns and that the return for years 3-7 of Stargazer remains the same as year 3. Table 2; Return on investment Juniper Palomino Stargazer ROI per annum 250,000 427,500 Variable Lifetime (years) 3 5 7 Total return 750,000 2,137,500 4,600,000 Investment 325,000 655,000 575,000 ROI The ROI indicates that Stargazer will give the highest rate of return, and with a project that will last for 7 years,