Assignment:
Please Answer all the questions and justify the answers too. The justification should include key terms, techniques, and possibly equations necessary to show satisfactory understanding of the topic being tested. For some questions, "satisfactory understanding" can be in the form of one complete sentence, whereas other questions may require one or two complete paragraphs. To answer the question, write your T/F answer, followed by the justification.
1. In order to have effective executive leadership in innovation, senior management MUST be involved in day-to-day project management.
2. Profitability is defined by ECV, ECV PI, and ROI, in that with a low ECV, the return on investment is high, and managers should elect to spend money on that specific project.
3. In order to calculate the NPV PI, the inputs required are: the present value of future earnings; development cost; and capital cost. The PI is then the ratio of NPV to the constrained resource.