Suppose that you are trying to choose which of two IT projects to accept. Your company employs three primary selection criteria
for evaluating all IT projects: (1) proven technology, (2) ease of transition, and (3) projected cost savings.One option, Project Demeter, is evaluated as:Technology highEase of transition lowProjected cost savings highThe second option, Project Cairo, is evaluated as:Technology mediumEase of transition highProjected cost savings highConstruct a table identifying the projects, their evaluative criteria, and ratings. Based on your analysis, which project would you argue in favor of adopting? Why?
1 answer:
Answer:
The explanation of this question is given below in the explanation section.
Explanation:
In this question, it is asked about to select one project among two given project based on the evaluation criteria. These evaluation criteria include:
- Proven technology
- Ease of transition
- Projected cost saving
Based on my analysis, I will select the project cairso because It has high transition and high projected cost saving.
The analysis of these project is shown in attached picture with this solution.
You might be interested in
Answer:
Explanation:
as it is said we must apply the CAPM model, so we have:
where is the capital asset pricing model,
is the risk free of the market,
is the relation between the market benchmark and an asset return, and
is the expected return of an asset