Project Selection Journal Guidelines and Rubric
You are a project manager for a local company that is considering installing a new content management system.Your boss has asked you to do a net present value (NPV) analysis, calculate a benefit-to-cost ratio, and tell him what the payback period will be for this investment.After careful analysis, you have developed the table below.It outlines the benefits and investment costs for the next 5 years.Assuming your company's cost of capital is 10 percent, you are to determine:
- The net present value of the project
- The benefit-to-cost ratio
- The payback period
|
Years
|
Benefits
|
Investment Costs
|
|
0
|
0
|
$10,000
|
|
1
|
$10,000
|
$20,000
|
|
2
|
$30,000
|
$20,000
|
|
3
|
$60,000
|
$50,000
|
|
4
|
$100,000
|
$50,000
|
|
5
|
$100,000
|
$50,000
|