what are the various methods to project selection for project management?

Answer 1

Use MS Excel to do this extremely simple exercise in project analysis:

1.Forecast the earnings (after tax) per year of the project over the next five years then lay it out on the worksheet from right to left.

2. Increase it at a reasonable rate such as 5% or inflation every year.

3. At the last cash flow (at the fifth year), divide it by 12% and call this terminal value.

4. Now, use this formula by selecting all the cells of the cash flows

=NPV(12%,array of cells)

If the number is positive, then you can go choose this project. If it is negative, then it is a bad investment.

Answer 2

First of all you have to do your homework. You need to do a cost benefit analysis and determine if you will get a return on money invested in the project and in what time frame. Also, you need to determine if the project will be in line with the company's core business and strategic plans. Here is a power Point example: http://www.gagta.com/Project_Selection.ppt

http://www.bright.net/~jpmart/Project_Selection.html

The following link will take you to some project management methods.

http://www.comptechdoc.org/man/begin/manprojintro.html

Answer 3

Usually ROI.