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Your project is behind schedule and you are seeing adding extra employees to the team. What would be the potential benefits and drawbacks of this approach?
Given that the slippage is spotted early adequate, adding extra employees may be a feasible strategy like there will be time for them to be trained and turn into familiar along with the project. Or else, adding extra people may in fact be counterproductive, as training them and/or bringing them up to speed onto the project may distract the existing staff through getting on along with their work. Nonetheless, when the slippage is diagnosed as being because of a lack of expertise or experience into the project team, bringing in some experts may well allow the project to recover.
Your company's cost of capital is 12%. You are currently evaluating three projects that have the following cash flow streams: Project 0 1
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