Project Selection and Estimating Technique Paper

Project Selection and Estimating Technique Paper

Explain the factors that determine how a company selects a project.

Differentiate between top-down and bottom-up estimates, including when each would be used.

Determine the methods for estimating project costs.

Explain the types of costs.

Format your 700- to 1,050-word paper consistent with APA guidelines.

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Project Selection and Evaluation

Every company may at one time need to evaluate the appropriateness of undertaking a particular venture, in which case it would conduct an evaluation process intended to determine which of the available options would be more appropriate for the investment. Consequently, different factors determine the appropriateness of any investment and end up determining the possibility of the investor in question, or the management within a particular firm, investing in the project. Ultimately, it remains essential that the firm considers all the options as lack of such considerations could lead to loss of resources that would have been otherwise productive if allocated elsewhere. Appropriate project selection should always follow an elaborate evaluation process that not only includes analysis of benefits to the firm, but also the costs involved in running the project.

(903 words)