1. UNCLASSIFIED 1 Project Recommendation British Motor Works (BMW) has decided to realize its strategic differentiation by launching a new line of 7 Series vehicles that offer superior power but, alternatively, uses "green energy" vice diesel fuel. BMW has three proposed projects under consideration but can only fund one of three alternatives. You will perform a Business Case Analysis (BCA) on all three considerations on the basis of Net Present Value (NPV), Return on Investment (ROI), and Pay Back Period (PBP); ranking the projects most desirable to least desirable. See Assignment 1 and pay particular attention to my comments in RED.

2. UNCLASSIFIED 2 Choose Your Project NPV http://www.investopedia.com/calculator/netpresentvalue.aspx ROI = Earnings – Investment / Investment PBP = Investment/Cash Flows

3. UNCLASSIFIED 3 BMW 7.1 http://www.investopedia.com/calculator/netpresentvalue.aspx SilasCoCash Flows Mobile $162,000 Funded at $2.75M $72,100 Discount Rate 5% $327,215 3 Years to Delivery$518,119 $228,000 $216,275 $187,500 $296,700 $312,275 $144,900

4. UNCLASSIFIED 4 The BMW Breeze 7. 2 http://www.investopedia.com/calculator/netpresentvalue.aspx Project BMW BreezeCash Flows The BMW Breeze 7.1 $295,000 Funded at $1.8M $828,100 Discount Rate 5% $513,662 3 Years Delivery $158,236 $282,000 $261,275 $181,880 $178,600 $123,175 $162,765

5. UNCLASSIFIED 5 The BMW Freedom 7.3 http://www.investopedia.com/calculator/netpresentvalue.aspx Project BMW FreedomCash Flows The BMW Freedom 7.3 $261,000 Funded at $1.58M $169,200 Discount Rate 4% $300,215 3 Years to Delivery$185,500 $128,000 $126,275 $718,500 $269,600 $213,175 $144,900

6. UNCLASSIFIED 6 Narrative Analysis  When companies decide on their strategic projects, considerations move beyond just quantitative data.  Using your overall project ranking for BMW, write a narrative that addresses the risks and trade-offs BMW should consider.  For example, if the ROI of a given project consideration is unfavorable what are the risks associated with taking on that endeavor?  On the other handed, if the ROI is favorable and the PBP is least favorable, what are the trade-offs to consider?  Write a narrative for each project, addressing the pros, cons, and trade- offs.