
Project Selection – Murder Board
‘Murder Board’ might not really sound like a Project Selection Process but then again it is meant to be more of a Project ‘Rejection’ Process. The Murder board is basically …
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‘Murder Board’ might not really sound like a Project Selection Process but then again it is meant to be more of a Project ‘Rejection’ Process. The Murder board is basically …
Read MoreDefinition Internal rate of return (IRR) is the interest rate at which the cash inflow and cash outflow of the project equals zero. You don’t have to understand that! Sample …
Read MoreDefinition Benefit-Cost ratio is the ratio of the benefits of a project compared to the costs calculated in terms of Present Value (PV). BCR > 1 – the project is …
Read MoreDefinition Opportunity Cost is the highest value a person needs to give up for the selected choice. For example, if you have US $10, you can either buy a coffee …
Read MoreDefinition Return on investment (ROI) is the benefit an investment bring about, by comparing profits in relation to capital invested. Sample Question An organization is considering several projects with the …
Read MoreDefinition Payback Period is the time it takes for the organization to earn back the initial investment (in terms of monetary cost) to the project and begin making profits. Sample …
Read MoreDefinition Net Present Value (NPV) of the sum of all cash inflows (in Present Value) of the project minus the initial cost, i.e. PV (benefits) – PV (costs) (Read more) …
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