Alumno: Matricula:

Juan Antonio Rodríguez Soto 2904354

Maestro(a): Materia:

Nancy Paola García Lozano Administración de Proyectos

Topic: 1 Activity: 2

1. First, answer the following questions:

a. Why should an organization prioritize their projects?

For an organization to be successful, it must have well-defined goals and

prioritize its projects.

b. How many methods are there for choosing projects within a

company?

 recovery period method

 net present value method npv
 checklist method
 multiple value rating method

c. Why should the selection of projects of an organization not be

solely based on the ROI?

ROI is used only to screen out high-risk projects and does not take into
account the time value of cash.
 d. How does the check-list work?

is informed by a list of questions to review potential projects and

determine their acceptance or rejection.

How does the multiple assessment scoring method work for

choosing projects?

It consists of a matrix which will provide a rating of a project that is

compared with different project variables to be able to encompass them
and from this the organization has a more complete prespective.

2. Then, create a table that shows the advantages and disadvantages of the
project selection methods and answer the previous questions.

Advanyages Disadvantages
recovery period in the simplicity of its does not take into
calculation, it is an account the net flows
intuitive method. after recovery
net present value considers the total difficulties in
useful life periods determining the
discount rate
checklist promotes planning, its focus may be too
ensures a consistent narrow to identify
approach and acts as a specific problem areas.
sample plan.
multiple appraisal is the most effective for requires that the
rating decision making on a information to be
project. obtained be well
defined.
 3. Moreover, analyze the following scenario:

Custom Bike Company has made a multiple assessment criteria matrix for their
potential projects. The matrix with the considered projects is shown below.

10%of sales
Supports the Fills a gap
Powerful come from Total
Criteria business Urgency Competition in the
sponsor new assessed
strategy market
products
Weight 2.0 5.0 4.0 3.0 1.0 3.0  
Project 1 9 5 2 0 2 5 68 
Project 2 3 7 2 0 5 1  57
Project 3 6 8 2 3 6 8  90
Project 4 1 0 5 10 6 9  85
Project 5 3 10 10 1 8 0  105
 

4. Based on the interview you did with the Project Manager, answer the following
questions and justify your answers:
a. Use the matrix and determine what project you would rate as the
highest and which as the lowest.

the highest project is 5 and the lowest is 2

b. Which projects would you classify as urgent?

the 4 and 5

c. Which projects would you classify as obligatory?

5 and 3
 d. If the weight for the powerful sponsor criterion varies from 2.0 to 5.0:

10%of sales
Supports the Fills a gap
Powerful come from Total
Criteria business Urgency Competition in the
sponsor new assessed
strategy market
products
Weight 5.0 5.0 4.0 3.0 1.0 3.0  
Project 1 9 5 2 0 2 5 85
Project 2 3 7 2 0 5 1 66
Project 3 6 8 2 3 6 8 111
Project 4 1 0 5 10 6 9 88
Project 5 3 10 10 1 8 0  114

i. Would this change the selection of projects?

Yes

ii. Which are the three highest scores with this change?

project 4, 5 and 3

5. Finally, develop a conclusion about project selection methods and highlight the
importance of having a project portfolio.

project selection methods are very important for an organization because they
are used to evaluate the aspects that are required to make a good decision.
through them we can have results that will lead to the fulfillment of strategic
goals, this helps the company to maintain a set of criteria to evaluate the
opportunity.

the selection of projects is vital for the company since it must be precise to
evaluate and classify the projects.