Project selection method

Question 1

Scoring model

Answer 1

Bar chart that compare with defined measure and identifity which is best project to start in term.

Question 2

Benefit Cost Ratio

Answer 2

It is compare between the benefit and cost. The project that has higher benefit and lower cost is the most desire.

Question 3

Present Value

Answer 3

Understand the project present value by calculating it future value, it is to determine whether its worth the investment.

PV = FV ( 1 + i ) ^ n

Question 4

Future Value

Answer 4

Future Value is to detemrine what’s the current value of the project, whether it is the project it really worth the current investment based on current market value.

FV = PV / ( 1 + i ) ^ n

Question 5

Net Present Value

Answer 5

Net Present Value is minus all the expense or required expenses and determine it based value.

Question 6

Constraint Optimization Method

Answer 6

This is an computer calculating, involved complex calculation and logics for project selection.

Question 7

Project purpose

Answer 7

Select the project based on it purpose.