Reference no: EM13347000
An analysis of the overall project risk resulted in classifying Project A as a "risky project" because it scores 8 in a risk scale of 10 (in the scale 1 = very low risk).
Subject matter experts were asked the question: Do you think Project A has the capability to attract more projects from the current customer and from new customers? 8 out of 10 agreed it has attraction capability.
Project A's life cycle is expected to be 2 years. During these 2 years project A is expected to cost:
The market life cycle of the project A's deliverable is 5 years (i.e., a product/system life cycle of 7 years). Project A is expected to start to generate revenues at the beginning of year 3. The expected revenues of project A are:
Annual costs during the market life cycle are expected to be:
PROJECT B:
An analysis of the overall project risk resulted in classifying Project B as a "very low risk project" because it scores 1 in a risk scale of 10 (in the scale 1 = very low risk). Subject matter experts were asked the question: Do you think Project B has the capability to attract more projects from the current customer and from new customers? 2 out of 10 agreed it has attraction capability.
Project B's life cycle is expected to be 7 years. During these years Project B is expected to cost:
The market life cycle of the Project B is 30 year (i.e., a product/system life cycle of 37 years). Project B is expected to start to generate revenues at the beginning of year 2. The expected revenues of Project B are:
Annual costs during the market life cycle are expected to be:
