Assignment:
1 Personal Experience - How do Leaders/Managers Maximize Results Read the following article:
Reference: Brookmire, D. (2014). Managers or leaders? Leadership Excellence. 31(2), 27-28. 2p. 1. Chart.
The article explains how management and leadership can achieve high engagement in organizations. According to the author, organizations rely on both leaders and managers to maximize their successes. The author adds that companies need to develop the competencies in their managers and leaders to ensure that their various needs are met. Based on your readings and personal experience how does this correlate with what you have read and with what you have experience in the workplace? Substantiate your argument with a cited academic reference or explicit personal example. Be sure to follow the grading rubric and show good use of critical thinking.
2 Time Value of Money as ROI
As a newly hired Project Manager, you have been assigned to prepare a bid proposal for a project that your organization is interested in bidding on to possibly obtain a new contract. The assigned project is estimated to cost on the magnitude of $20 million over the course of 5 years. Your organization intends to borrow the entire amount up front to meet customer requirements and pay the debt off over the 5-year life of the project at an interest rate of 10% compounded annually. Including the principal and interest, what is the total cost of your project at the end of the five year life cycle? How much do you need to bid or earn from the work in terms of dollars to pay back the loan and still make some profit and cover operating expenses?
Show all work and calculations to include selected formulae. Based on your calculations what is the minimum estimate your organization should bid on your proposal and why is this so?
The Assignment should include a written narrative to explain your calculation and what it means, including commentary and analysis on how the organization should plan their activities and discuss covering costs and profit margins (use your project management skills and think like a Project Manager). If you are a project manager you need to be able to calculate what is the minimum estimate your organization should bid on your proposal to the customer to complete a project. Your explanation should demonstrate sound analysis and critical thinking. In completing this Assignment, please recall that you should calculate the Future Value. I will need to see the future value calculation for the initial $20M investment for each year up to five years.
As a gentle reminder, the future value calculation is as follows: FV=PV(1+i)5.
To simplify this Assignment, think of a making annual payments on the 5 year loan --make it a simple and clear operation-earn enough to repay the loan, cover operating costs and make a profit.
You are free to use a spreadsheet for your personal calculations, but you must transfer the calculation detail to the paper (as an annex after your conclusion) and you must discuss all of the components of the Assignment in a Word document.