TERM 1
Four stage strategic planning
process
DEFINITION 1
strategic planning
business area analysis
project planning
resource allocation
TERM 2
criteria for selecting a project
DEFINITION 2
is there a need?
are funds available?
is there a strong will to make the project succeed?
TERM 3
Financial Projections
DEFINITION 3
net present value
ROI
Payback analysis
TERM 4
NPV
DEFINITION 4
Net present Value
method of calculating net monetary gain or loss from a
project by discounting all expected future cash inflows
and outflows to the present point in time
TERM 5
ROI
DEFINITION 5
return on investment
calculated by subtracting the project costs fromt he
benefits and then dividing by the costs
ROI=(total discounted benefits- total discounted costs)
total discounted costs
