Four projects are available for investment. The projects require the cash flows

Question

Four projects are available for investment. The projects require the cash flows (investment) and yield the net present values (NPV) (in millions shown) shown in the table below. If $8 million is available for investment at time 0, find the investment plan that maximizes NPV. Formulate the problem as a knapsack problem, and solve the model using the branch and bound procedure designed for knapsack problems. Note that each subproblem must be solved by hand. Project Cash Outflow at Time 0(NPV (S) Money Invested) 4 (Money Earne 1 10 4 6 4

Explanation / Answer

For a project it is very important to identify, manage and engage its stakeholders in very effective manner so that it can reduces its risk, implement mitigation measures and make a successful project. The strategies to be employed to identify, manage and engage project stakeholders could be followings–

Identification of the stakeholders and their analysis is crucial for any project; the stakeholders could be internal or external. Knowing the interest and influences of stakeholders could be beneficial in this regard. The stakeholders are key resource for any project so their proper identification is vital for the project.
Scaling the influence of key stakeholders on the project based on their influence on decision making and other factors of the project. The scaling can be based on the stakeholder’s ability from high, medium and low to influence the key parameters of the project where high influence stakeholders use to have a greater hold on the project and have the ability to change its important characteristics. While medium influence stakeholders have comparative lower ability but it is significant on projects point of view and low influence stakeholders have insignificant power on the project.
Identify the key triggers which influence the stakeholders of the project. The triggers may have different influences on different stakeholders and knowing them could be helpful for the stakeholder’s management of the project. And it could help in implementing mitigation measures for the project.
The involvement of stakeholders at every stage of project is very important and can be done through periodically updating the concern stakeholders about the developments of the project, if they are not directly involved with the project. It will ensure their engagement and interest in the project.
The effective communication strategy of each process to the concerned stakeholders is very important and could be a great strategy to identify, manage and engage project stakeholders throughout the life of the whole project and to make the project successful.

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