Problem: Techno Company considers a project that costs $10,000 today. It will provide benefits of $4,000 at the end of year 1, $3,500 at the end of year 2, and $3,500 at the year of year 3. The discount rate is 6 percent per annum. Techno Company CEO has strict financial objective to accept the project that provide benefit return of more than its cost ($10,000) to the company. Projects that are aligned to strategic objective are 57% more likely to deliver their business benefit has to be accepted. It should create value to the company. The wastage should not be more than 25%.
Question 1: Analyse benefit of project and assess the project benefit deliverables from constituent project according to benefit measurement approach and justify it. Will Techno company CEO accept the project or not, based on analysed benefit?
Question 2: Based on above case (Question 1), assess the case according to benefit measurement approach and align the benefits of Techno Company which can be analysed to organisational objectives?