Decision Making in Management
How do you implement decision making in management?
Accounting For Decision Making
by Paul Moses
(Durban, South Africa)
The following information relates to two projects, project Alpha and Project Beta, from which one must be chosen by Pacific construction Ltd.
After-tax Cash Flows
Year Alpha Omega
1 0 36000
2 18500 36000
3 36200 36000
4 123000 36000
Both projects require an initial investment of R118000. The cost of capital is 12%
As the project manager of Pacific Construction Ltd you are required to:
2.1 Calculate the Net Present Value (NPV) for both projects
2.2 Which project should be chosen? Why?
What Is A Decision Support System?
What is a DSS?
Here is a quote from a government website:
"A Decision Support System (DSS) can be defined in many ways. The working definition the Upper Midwest Environmental Sciences Center (UMESC) uses is, "A spatially based computer application or data that assists a researcher or manager in making decisions." This is quite a broad definition and it needs to be, as the possibilities for types of DSS are limited only by the user group and the developer's imagination. There is no one DSS; they are as diverse as the problems they help solve. This diversity requires that DSSs are built in a variety of ways using the most appropriate methods and tools for the individual application. The skills of potential DSS users vary widely as well, further necessitating multiple approaches to DSS development. Some small, highly trained user groups may want a powerful modeling tool with extensive functionality at the expense of ease of use. Other user groups less familiar with geographic information system (GIS) and spatial data may want an extremely easy to use application for a wide public or otherwise nontechnical audience. The UMESC DSS developers offer our partners a wide variety of technical skills and development options, ranging from the most simple Web page or small application to complex modeling application development."
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