3. Project Janus and Project Gemini are both profitable projects to the organization but due to the financial constraint placed on budget, it is impossible for both projects to the funded at the same time.
Nova Western should select Project Gemini because according to the first evaluation team which used the Scoring Model, the weighted score was favourable to the Project Gemini. Although, the NPV analysis used by the second evaluation team showed that Project Janus will bring a higher net present value for the initial investment made which will also take two years longer than Project Gemini.
Most organizations like Nova Western will find it difficult to tie up their company’s money in a project that will take too long because the longer the time a project takes, the higher the budget.
Also, considering the categories in which the first evaluation team used in evaluating the project, you will realise they were more concerned about correcting the downward drift in revenues …show more content…
The reason there was a divergence of opinion in the analysis was because the two evaluation team used different types of screening methods. The first evaluation team used a non-financial screening method while the second evaluation team used a financial screening method. Therefore, it is allowed for the non-financial and financial screening methods to provide opposing analysis. The use of these two screening methods for the project analysis is therefore not enough leading to the application of another screening method like the Analytic Hierarchy Process because the information provided is decomposed into a hierarchy of alternatives and criteria, Information is then synthesized to determine relative ranking of alternatives, also both qualitative and quantitative information can be compared using informed judgements to derive weights and priorities (Unknown, 2015). The use of the Analytic Hierarchy Process will also broaden our criteria – choice and finance to prompt a better decision
Nova Western should select Project Gemini because according to the first evaluation team which used the Scoring Model, the weighted score was favourable to the Project Gemini. Although, the NPV analysis used by the second evaluation team showed that Project Janus will bring a higher net present value for the initial investment made which will also take two years longer than Project Gemini.
Most organizations like Nova Western will find it difficult to tie up their company’s money in a project that will take too long because the longer the time a project takes, the higher the budget.
Also, considering the categories in which the first evaluation team used in evaluating the project, you will realise they were more concerned about correcting the downward drift in revenues …show more content…
The reason there was a divergence of opinion in the analysis was because the two evaluation team used different types of screening methods. The first evaluation team used a non-financial screening method while the second evaluation team used a financial screening method. Therefore, it is allowed for the non-financial and financial screening methods to provide opposing analysis. The use of these two screening methods for the project analysis is therefore not enough leading to the application of another screening method like the Analytic Hierarchy Process because the information provided is decomposed into a hierarchy of alternatives and criteria, Information is then synthesized to determine relative ranking of alternatives, also both qualitative and quantitative information can be compared using informed judgements to derive weights and priorities (Unknown, 2015). The use of the Analytic Hierarchy Process will also broaden our criteria – choice and finance to prompt a better decision