Which project is preferable

Assignment Help Project Management

Reference no: EM131374573

The recreation department for Southampton is trying to decide how to develop a piece of land. The y have narrowed the choices down to tennis courts or a swimming pool. The swimming pool will cost £2.5 million to construct, and will cost £300 000 per year to operate, but will bring benefits of £475 000 per year over its 25-year expected life.

Tennis courts would cost £200 000 to build, cost £20 000 per year to operate, and bring £60 000 per year in benefits over their eight-year life. Both projects are assumed to have a salvage value of zero. The appropriate ALARR is 5%.

(a) Which project is preferable? Use a BCR and an annual worth approach.

(b) Which project is preferable? Use a BCRAI and an annual worth approach.

Reference no: EM131374573

Questions Cloud

Whats important is to create an impact by turning it off : Sociologist Bernard McGrane is noted for having designed a series of experiments that are widely used in teaching sociology students. In the 1990s, he conducted the famous "Un-TV" experiment, which he asks students to "watch" TV without turning it..

Calculate a bcr using annual worth : Calculate a BCR using annual worth and classify the forgone taxes as a cost to the government.- Repeat part (a), but consider the forgone taxes a reduction in benefits.

Identify issue of your choice involving information systems : Identify an issue of your choice involving Information Systems Ethics or Information Systems Privacy. You can do an internet search on "information systems ethics" or "information systems privacy" to find a potential issue to write about.

Deliver software projects : Write 1000 words about the context of your current (or past) work. Focus on the software delivery practices followed and the methodologies used to deliver software projects. Speak to how work is delivered, ordered/prioritized/ teams are formed and..

Which project is preferable : Which project is preferable? Use a BCR and an annual worth approach.- Which project is preferable? Use a BCRAI and an annual worth approach.

Pursue within a pharmaceutical company : Identify the type of power struggles and politics that may occur when selecting projects to pursue within a pharmaceutical company

Mitigation management regarding natural risks : How to mitigate natural risks on construction project such as flood, earthquake, and other phenomena that damage construction sites or make access for work impossible? What can be the mitigation management regarding natural risks?

Explain how software of your choice can best address most : Explain how the software of your choice can best address most, if not all of the company's main business processes involving accounting, customer relationships and inventory.

Find benefit cost ratio and the modified benefit cost ratio : Find the net present worths for the dam and the dam plus recreation facilities considered in Review given Problem.

User Account

All Pages