1. Three investment alternatives (A, B, and C) are being considered. The discounted present worth (PW) for the alternatives are $35,000, $30,000, and $37,000, respectively. The three alternatives have different rankings in terms of employee morale (EM) and vendor reputation (VR). The following weights have been assigned to the three factors (PW, EM, and VR): 40, 35, and 25. On a scale from 1 to 10, the following ratings have been assigned to the three alternatives for the three factors:
Using the weighted factor comparison method, which investment alternative would be recommended?
Ranking 
Score 

CA 
CRS 

R 
1 
5 
7 
S 
2 
7 
5 
NPW 
$60K 
$40K 
A 
B 
C 

PW 
9.2 
8 
10 
EM 
9 
10 
8.5 
VR 
9.5 
10 
9 
Weighted Factor Rating of Alternative A = ( Rating of PW* Weight of PW + Rating of EM* Weight of EM+ Rating of VR* Weight of VR)/(Sum of all weights) = (9.2*40+9*35+9.5*25)/(40+35+25)=(368+315+237.5)/100=920.5/100=9.205
Weighted Factor Rating of Alternative B = ( Rating of PW* Weight of PW + Rating of EM* Weight of EM+ Rating of VR* Weight of VR)/(Sum of all weights) = (8*40+10*35+10*25)/(40+35+25)=(320+350+250)/100=920/100=9.2
Weighted Factor Rating of Alternative C = ( Rating of PW* Weight of PW + Rating of EM* Weight of EM+ Rating of VR* Weight of VR)/(Sum of all weights) = (10*40+8.5*35+9*25)/(40+35+25)=(400+297.5+225)/100=922.5/100=9.225
Since alternative C has highest rating, Alternative C is recommended
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