How a project is selected?
A particular project may have different alternative solutions. A company may have multiple project plans and they need to select one of them.
1. Scoring Model: Identify some matrix to find which project strategy is better or which project will be more profitable. Assign values for these parameters and select which one provides greater value.
2. Benefit contribution: Use cost benefit analysis, short term and long term cost benefit analysis.
3. Economic models:
Benefit Cost Ratio
Internal Return Rate
Present Value and Net Present Value
Discounted Cash Flow
Return on Investment