If the NPV of a project is $35,000 and the cost of implementation is high, although the benefits are on the higher side with the NPV calculated across 5 years, what would be your assessment?
OPTIONS
- The Project can be done
- The project needs to be on hold
- The team will take a decision on consensus
- The Management team will take a decision
ANSWER
The Project can be doneThe project needs to be on holdThe team will take a decision on consensusThe Management team will take a decision
EXPLANATION
Although the NPV is $35,000 for benefits across 5 years, high cost of implementation may dissuade the management to implement this solution. Thus, THE FOURTH OPTION is correct.