Planning the project

Question 1 – Read and reflect on the assigned readings for the week (chapter – 7,8 ) and summarize what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter. Also, provide a graduate-level response to each of the following questions:

• Your manager recently gave you the responsibility of selecting the next project, which you will manage as the project manager. There are currently 3 projects on hold to choose from. Using the weighted scoring models method, you determine that Project A has a weighted score of 16, Project B has a weighted score of 14, and Project C has a weighted score of 17. Which project do you choose and why?

Question 2 Software project decision point.

• First assume/determine an interest rate to use—select an interest rate and explain why you think this number should be used. Use it in your calculations in item 1.2.
• Given the information below on options 1 and 2, carry out three forms of analysis: breakeven, ROI, and NPV.
• Make a recommendation on which way to proceed, based on the TCO for each option.

• Option 1: Purchase the FunSoft package: Cost $200,000 for software and $85,000 for hardware in year one; with $50,000 to customize it and a $40,000 annual licensing fee for the life of the contract. There will be an annual saving of $61,000 due to the layoff of a clerk.
• Option 2: Purchase the SoftComm package, which will operate on the vendor’s hardware: Cost $250,000 for a five-year license, payable half up front and half during the first year of implementation. The maintenance contract, at $75,000 a year, includes all currently identified modifications to the software for the first three years. The clerk’s hours will be cut by half, for a saving of $25,000 a year.

In both cases, sales are expected to increase from the current $1 million a year, by 10% per year each year (over each year’s previous year’s sales) after full implementation. Assume a five-year life for the software.