WorksheetsQuiz 2
Total questions: 5
Worksheet time: 47mins
You manage a hotel resort located on the South Beach on the Island of Kauai in
Hawaii. You are shifting the focus of your resort from a traditional fun-in-the sun
destination to eco-tourism. (Eco-tourism focuses on environmental
awareness and education.) How would you classify the following projects in
terms of compliance, strategic, and operational?
a. Convert the pool heating system from electrical to solar power is ________
b. Build a 4-mile nature hiking trail is __________
c. Update all the bathrooms in condos that are 10 years or older is _________
(a)
A five-year project has a projected net cash flow of $15,000, $25,000, $30,000,
$20,000, and $15,000 in the next five years. It will cost $50,000 to implement the
project. If the required rate of return is 20 percent, conduct a discounted cash
flow calculation to determine the NPV.
12,598
12,859
12,895
13,200
Two new software projects are proposed to a young, start-up company. The
Alpha project will cost $150,000 to develop and is expected to have annual net
cash flow of $40,000. The Beta project will cost $200,000 to develop and is
expected to have annual net cash flow of $50,000. The company is very
concerned about their cash flow. Calculate the payback period for both?
3.75 and 5
4 and 3.65
3.89 and 4
3.75 and 4
Pros and cons of the checklist method of
selecting projects.
Flexible
Applies over a wide range of different types of projects, divisions, and locations
Impossible to rigorously compare and rank project by priority
All are right
Pros and cons of the weighted factor methods of
selecting projects.
Allows comparison and ranking of potential projects
Open system and
allows for self-evaluation of proposed project
Power and politic games are exposed.
Downloaded
Applies over a wide range of different types of projects, divisions, and locations
