Gm591-Strategic Project Selection And Initiation

Unit 5[GM591: Strategic Project Selection and Initiation]Unit 5 Assignment: Time Value of Money asROIAs a newly hired Project Manager, you have been assigned to prepare a bid proposal for a projectthat your organization is interested in bidding on to possibly obtain a new contract. The assignedproject is estimated to cost on the magnitude of $20 million over the course of 5 years. Yourorganization intends to borrow the entire amount up front to meet customer requirements and pay thedebt off over the 5-year life of the project at an interest rate of 10% compounded annually. Includingthe principal and interest, what is the total cost of your project at the end of the five year life cycle?How much do you need to bid or earn from the work in terms of dollars to pay back the loan and stillmake some profit and cover operating expenses? Show all work and calculations to include selectedformulae. Based on your calculations what is the minimum estimate your organization should bid onyour proposal and why is this so?The Assignment should include a written narrative to explain your calculation and what it means,including commentary and analysis on how the organization should plan their activities and discusscovering costs and profit margins (use your project management skills and think like a ProjectManager). If you are a project manager you need to be able to calculate what is the minimumestimate your organization should bid on your proposal to the customer to complete a project. Yourexplanation should demonstrate sound analysis and critical thinking. In completing this Assignment, please recall that you should calculate the Future Value. I will need tosee the future value calculation for the initial $20M investment for each year up to five years. As agentle reminder, the future value calculation is as follows: FV=PV(1+i)5To simplify this Assignment, think of a making annual payments on the 5 year loan –make it a simpleand clear operation—earn enough to repay the loan, cover operating costs and make a profit. The Assignment (should be similar in format as all of our GM591 assignments week 1-6) must besubmitted as a Word document. You are free to use a spreadsheet for your personal calculations,but you must transfer the calculation detail to the paper (as an annex after your conclusion) and youmust discuss all of the components of the Assignment in a Word document. Please do not submityour excel spreadsheet, only the word document. Criteria for the Assignment? How much do you need to bid or earn from the project in terms of dollars to pay back the loan(principal and interest)?? How much do you need to add to the bid for profit and to cover operating expenses? Makesure you analyze the ROI and other relevant factors. ? You should conclude your discussion with the final recommended bid amount and why youarrived at your conclusion. ? Include references to validate key points, factual claims and counter arguments. Unit 5[GM591: Strategic Project Selection and Initiation]? Map organizational objectives, goals, and strategies to project management strategy. Components? APA information presented as a cover page (please see sample Unit 3 Assignment)? Table of contents? Executive summary? Body of the focus paper (use Headings to organize). ? Conclusion stated as your recommended solutions in terms of project management techniquesand tools. ? Reference page, a minimum of 3 scholarly journal or textbook source references cited andcredited according to APA format using a minimum of 6 intext citations? The paper should be focused and to the point, containing between 600 and 800 words fromthe Executive Summary to the end of your Conclusion. Directions for SubmittingTo submit your Assignment, go to the Dropbox and select the Unit 5: Assignment and follow theinstructions. Make sure that you save a copy of each of the papers you submit. Unit 5[GM591: Strategic Project Selection and Initiation]GM591 Unit 5 Assignment: Time Value of Money as ROIPointsPossibleContent (50 pts)Response successfully answers the assignment question(s), thoroughlyuses the text and other literature. Includes a strong thesis statement,introduction and conclusion. The main points of the paper are developedclearly. All arguments are supported well (no errors in logic) using outsidesources as assigned. 25Sources are primarily academic journals, with thoughtful use Web sources. References are applied substantively to the paper topic. Skillfully addressescounter-arguments and does not ignore data contradicting its claim. Refersto sources both in-text and in the reference page. 25Analysis (30 pts)Response exhibits strong higher-order critical thinking and analysis (e. g. ,evaluation). Paper shows original thought. 10Analysis includes proper classifications, explanations, comparisons, andinferences. 10Critical thinking includes appropriate judgments, conclusions, andassessment based on evaluation and synthesis of information. 10Writing (20 pts)Grammatical skills are strong with typically less than one error per page. Correct use of APA when assigned. 6Appropriate to the Assignment, fresh (interesting to read), accurate, (no farfetched, unsupported comments), precise (say what you mean), andconcise (not wordy). 8Project is in 12-point font. Narrative sections are double-spaced with adouble space between. Project is free of serious errors, grammar,punctuation, and spelling help to clarify the meaning by following acceptedconventions. 6Total100PointsEarned