- Channels of Communication
- It has been estimated that project managers spend up to 90% of their time communicating and your position at Roto Air is typical. Calculate the number of possible channels of communication if the project team were to grow to nine members, Important: show your work.
- The total number of stakeholders, including the project team, is estimated at 75 people. Calculate how many more possible channels of communication the additional stakeholders beyond the team members represent. Important: show your work.

- Benefit Cost Ratio (BCR)
- Roto Air plans to spend $1,000,000 on this project, resulting in a total savings of $2,500,000 over the life of the project. Calculate the Benefit Cost Ratio. Important: show your work. Ignore any effects of the time value of money.
- Roto Air also considered another project that would have partially satisfied their needs. It would have required a $750,000 investment and would result in a savings of $125,000 per year for 10 years. Calculate the Benefit Cost Ratio. Important: show your work. Ignore any effects of the time value of money.
- Comparing only the BCRs, explain which project should Roto Air should have chosen. Ignore any effects of the time value of money.

- Payback Period
- Calculate the payback period for the $1,000,000 investment shown above. Important: show your work. Ignore any effects of the time value of money.
- Calculate the payback period for the $750,000 investment shown above. Important: show your work. Ignore any effects of the time value of money.
- Comparing only on the payback periods, explain which project should Roto Air have chosen. Ignore any effects of the time value of money.

- Net Present Value (NPV)
- Calculate the Net Present Value of Roto Air’s $1,000,000 investment with a $250,000 annual savings for 10 years when the interest rate averages 3% annually. Important: show your work.

Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.

### Like this:

Like Loading...

*Related*