Question:
The most commonly used quantitative methods of evaluating projects are discounted cash flow methods such as net present value (NPV) or internal rate of return (IRR). One commonly used qualitative method of assessing development projects is to subject the project to a series of screening questions that consider the project from multiple angles. These questions may be used merely to structure the discussion of a project or to create rating scales that are then utilized in an approach that combines qualitative and quantitative assessment.
Respond to the following:
Why might a firm use both qualitative and quantitative assessments of a project? Give an example.
How does collaboration impact these assessments? That is, in evaluating a project that involves collaboration with another firm, would you use these assessment methods any differently? How and why?