Question

Use a weighted score model to choose between three different financing methods (A,B,C) for a project. The relative weights for each criterion are shown in the following table, as are the scores for each, the higher the value, the more favourable the score.

Project Characteristics	Weigh	A	B	C
Consulting Cost	20	1	2	3
Acquisition period	10	2	3	1
Disruption	10	2	1	3
Project risk	10	3	3	2
Required infrastructure	20	1	2	2
required equipment	10	2	2	2
Duration	20	1	2	2

Which is the best approach (A,B,C)

A) A

B) B

C) C

D) B and C are equivalent

Answer 1

Correct Answer:

The best Approach is C, as the weighted score is the highest among A, B, C.

Working:

Project Characteristics	Weigh	A	B	C	A	B	C
Consulting cost	20	1	2	3	20	40	60
acquisition cost	10	2	3	1	20	30	10
Disruption	10	2	1	3	20	10	30
Project Risk	10	3	3	2	30	30	20
Required infrastructure	20	1	2	2	20	40	40
Required equipment	10	2	2	2	20	20	20
Duration	20	1	2	2	20	40	40
Total Score					150	210	220

End of answer.

Thanks.