Download the Excel spreadsheet you will use for this assignm

Download the Excel spreadsheet you will use for this assignment.

Fill in the net benefits and benefits/costs for each project.

Rank order the projects if there are no budget constraints.

Write a 1-page business brief describing the following. Follow the Business Brief Guidelines.

Discuss the project if there are no budget constraints that should be chosen and why .

Discuss the project that should be chosen if the projects are mutually exclusive and why using the net benefits metric to justify your answer.

Discuss the project that should be chosen if the projects are mutually exclusive and why using the benefits/costs metric to justify your answer.

Discuss which metric (net benefits or benefits/cost) is preferable and why.

If there is budget constraints and the projects are not mutually exclusive, discuss which project(s) should be selected if the maximum budget is 18 and why.

If there is budget constraints and the projects are not mutually exclusive, discuss which project(s) should be selected if the maximum budget is 20 and why.

Go to the discussion topic, \"Metric Preference.\" Discuss which metric (net benefits or benefits/costs) is the preferable to use. Provide a rationale for your choice.

Solution

Net Benefits = (A) - (B)

Project Gamma should not be accepted at all as the Net Benefits are in negative.

1) Except Gamma, all the projects should be choosen if there in no budget constraints as the net benefits of all projects except Gamma is positive.

2) If the projects are mutually exclusive, then using the net benefits metric, the project which gives higher benefits is accepted. Accordingly, Project Beta is choosen as having highest net benefits.

3) If the projects are mutually exclusive, then using the Benefits/costs metric, the project which has highest Benefits/costs ratio is accepted. Accordingly, Project Alpha is choosen as having highest Benefits/costs ratio.

4) Net benefits metric is more preferable as compared to Benefits/costs metric because the former is the Absolute measure where as the later is the relative measure.