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FIG. 10
A display plot as in Fig. 9 enhanced to identify segmentation into value
groups based on risk. |
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It is important to consider NPV and ROI displays separately; they give different information about the projects under review. The former may highlight some projects which look relatively unattractive in terms of overall return, but examination of return on investment may indicate that the projects will pay back many times their investment and would logically be pursued on this basis alone if no other features came into play. Other factors also must be examined to ensure that a balanced picture of the projects under review emerges. Tabulation of the key criteria helps informed review. |
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| | Research potential (max 5) |
| | | | | | Project W | | | | | | | Project X | | | | | | | Project Y | | | | | | | Project Z | | | | | |
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In this example using different projects, on the basis of assessment of overall return, project X would appear highly attractive at $710M, but its |
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