Write a report to your Executive Committee recommending the financial measures and tests that should be applied to every new project to evaluate its financial viability.

Rationale Many organisations undertake a number of projects concurrently, which they select from an even larger number of potential projects. All the projects are purportedly advantageous to the organisation, and contribute to the achievement of the organisations strategic goals. Selecting the right projects to pursue is recognised to be possibly the most crucial decision that the organisation must make with respect to the project, so it is equally crucial that the selection process is properly and accurately carried out. A large part of the selection process involves evaluating the financial viability of the project; to ensure that the correct decisions are made a wide range of financial data is assembled and used. Whilst project managers may not be involved in carrying out these financial evaluations and decisions, they will have to interact with the consequences, and as more project managers move upwards into the PMO and into host organisations, their involvement becomes much more likely. It is therefore essential that project managers have an understanding of the financial measures and tests that are applied to projects to evaluate the financial viability of each project. This Assignment relates to all the Learning Outcomes. Scenario The Executive Committee of the client for whom you have been appointed to manage their future projects, have asked you to provide a report that explains the financial measures and tests, etc. that will be used to evaluate the financial viability of projects. Task Write a report to your Executive Committee recommending the financial measures and tests that should be applied to every new project to evaluate its financial viability. Provide an evaluation of the effectiveness of the financial measures and tests recommended. Assessment Criteria Discussion of financial measures and tests: 50%. Evaluation of the effectiveness of the measures and tests: 30%. Quality of the report and usability to the client: 20%.