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What does project selection criteria mean? Mention all, state their decision rule, advantages and disadvantages of each.

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Question added by Richard Berko Bempong
Date Posted: 2015/12/11
Steven Pearce
by Steven Pearce , Consultant , 5th Sun EMS Consulting Group

Here is a link to an article that I wrote about it.

Piotr Teteruk
by Piotr Teteruk , IT Project Manager Roche , Roche

Business criteria - List the economic parameters and their threshold values for project acceptance, such as:-Proposed Budget, Pay Back Period,  Net Present Value and ROI – Return On Investment.

Logistical criteria - List other non-quantified considerations for project acceptance.  This includes strategic initiatives, such as market horizontal expansion, or business imperatives such as regulatory compliance. 

Project selection criteria mean:

Net Present Value

The Internal Rate of Return

The recovery time on investment

 

The Profitability Index

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