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Ans2.

There are two strategic considerations - leadership position of the product and
internet use apart from the NPV approach. From the question, the weightage for NPV has
been taken as twice that of leadership position & internet use.

Following are the scores assigned to the importance of each strategic consideration
(Leadership & Internet use):

Importance Score Score based on 100


High 3 100
Moderate 2 66.67
Low 1 33.37
No 0 0

Also, for NPV, the scores are assigned as:

Score based on
Product NPV
100
Web Browser 6779898.70 100.00
Trip Planner 2944042.97 43.42
Spreadsheet 2501024.51 36.89
Email/Calender 1575155.23 23.23
Portfolio Tracking 1218324.22 17.97
Expense Report 607862.11 8.97

Based on the scores for the 3 criterias, we get the following weighted factor score and the
rankings for the projects:

Projects
Criteria Weig Web Trip Spreads Email/Ca Portfolio Expense
htage Browser Planner heet lender Tracking Report
NPV 0.5 100 43.42 36.89 23.23 17.97 8.97
Leadership 0.25 33.33 33.33 66.67 66.67 100 100
Internet 0.25 100 100 0 66.67 66.67 33.33
Weighted Score 83.33 55.04 35.11 44.95 50.65 37.82
Rank 1 2 6 4 3 5

Weighted Factor
Project Labour Hours Score Rank
Web Browser 1875 83.33 1
Trip Planner 6250 55.04 2
Spreadsheet 2500 35.11 6
Email/Calender 1250 44.95 4
Portfolio Tracking 750 50.65 3
Expense Report 400 37.82 5
Recommendation: The decision is taken based on Upper limit on Labour Hours (10000) and
Higher Weighted Factor Score. Hence, we discard the projects Spreadsheet and
Email/Calendar as including them would lead to exceeding 10000 hours and are low on
weighted factor score.

Weighted Factor
Project Labour Hours Score Rank
Web Browser 1875 83.33 1
Trip Planner 6250 55.04 2
Portfolio Tracking 750 50.65 3
Expense Report 400 37.82 5
Total 9275