GMS 450 Lecture Notes - Lecture 2: Discounted Cash Flow, Payback Period, Cash Flow

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 450
• Professor: Mohammed Nikoofal

Document Summary

Every project begins with a proposal but not every proposal begins with a project. Project selection is process of evaluating projects and choosing them so firm objectives are met. Projects can be categorized as one of the following. Compliance: projects that are essential to meet new requirements imposed by internal and external entities. External entities may be government regulations and requirements (cid:862)must do(cid:863) proje(cid:272)ts; if (cid:374)ot i(cid:373)ple(cid:373)e(cid:374)ted, (cid:373)a(cid:455) fa(cid:272)e pe(cid:374)alties. Emergency: projects that are needed to meet emergency (cid:272)o(cid:374)ditio(cid:374)s; (cid:373)a(cid:455) (cid:271)e (cid:862)(cid:373)ust-do(cid:863) proje(cid:272)ts; if (cid:374)ot implemented, organizations may not be fully operational to fulfill their core competencies. Mission critical: critical to the mission of a company. If not completed, would cause immediate, unacceptably negative impact to business. Operational: projects that are needed to support current operations. Strategic: projects that are essential to support long-range mission (increase revenue, increase market share)