projects that stand the greatest chance of getting cancelled
Submitted by steelproject2012 on Sun, 02/10/2013 - 11:20
Project A has an NPV of $275k over 2.5 years. Project B has an IRR of 3.2%. Project C has a BCR of 0.89:1. Project D has four people on it and is encountering scope creep. Which of the following projects stand the greatest chance of getting cancelled?
A. Project B
B. Project A
C. Project D
D. Project C
Of course, the 2 projects with negative impacts are Projects C and D. What do we consider in this case?
Forums:
sspawar
Sun, 02/10/2013 - 13:43
Permalink
option D - project Cproject
option D - project C
project -D , having scope creep , means, project is running and it s not clear, this scope creep is of what amount..
hence greatest chance is of project C
daso
Sun, 02/10/2013 - 13:46
Permalink
That's tricky.I would say
That's tricky.
I would say Project C since I think that scope creep is easier to handle than a cost deficit. but thats just my humble opinion ;)
steelproject2012
Sun, 02/10/2013 - 16:05
Permalink
Project A has an NPV of $275k
Project A has an NPV of $275k over 2.5 years. Project B has an IRR of 3.2%. Project C has a BCR of 0.89:1. Project D has four people on it and is encountering scope creep. Which of the following projects stand the greatest chance of getting cancelled?
A. Project B
B. Project A
C. Project D
D. Project C
Its possible for Project D to have a better BCR than project C.
The question, however, has restricted our knowledege to only BCR (0.89, cost overrun, Project C) and scope creep (project D with ONLY 4 people). I think the No of pple on project D further suggests its of a low risk, less capital intensive as compared to a project of 1,000 workers.
Its cost over run (0.89) Vs Scope creep with 4 workers.We can quantify the effect on C but not on D. To eliminate D, it would require further investigation. Hope am getting it correctly, anyways.