Discussion Post: Investment Decisions
As a project manager of your company you determine whether or not to launch a new project. Your company is willing to invest $3,000,000 for a new project if it can make at least the equal amount ($3,000,000) of the present value (PV) of cash flows in 5 years. Evaluate the factors that you should consider in your investment decision. Explain the differences between the PV and the NPV. What is your decision rule for a new project? Provide any scenario of a new project that you may decide to launch.
You want to be sure to answer them all. As always, you want to be sure to employ the vocabulary of our class and text. Your company is willing to invest $3,000,000 for a new project if it can make at least the equal amount ($3,000,000) of the present value (PV) of cash flows in 5 years.
• Evaluate the factors that you should consider in your investment decision.
• Explain the differences between the PV and the NPV. (This is discussed in the text)
• What is your decision rule for a new project? (Appropriate decision reviews are also discussed in the text.)
The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.