Schwalbe defines a project as “a temporary

DMBA 620 is a temporary activity that will last only for a semester. The course is also expected
to equip the student with vast knowledge that can be considered common among all the students
in this class. The knowledge contained in this course was once a project since it involved
research and resources allocation and was undertaken within a specified period of time. In this
course, the concepts and expected answers are already known by the educators hence they rely
on the information whose course and effect are already known. For example, it is already known
that increase in price will likely to lead to a reduction in demand for a normal commodity. Prior
to teaching, the price-demand concept might not be known to many but the educators know it
and thus deliver the knowledge to the students. Looking at the definition of the project, DMBA
620 only satisfy time factor since it is studied within a limited time by the student in that class.
However, the result that is obtained is not unique but common since all students get the already
known knowledge and not a new idea. To obtain new idea a student needs to think based on the
already taught knowledge to get started. Therefore, DMBA 620 is not a project but a normal
concurrent learning activity.
Opportunity cost in project selection
Selection of the project has a wide range of impact on a different channel of the company. Some
of the opportunity cost to be considered in project selection includes the value of shareholders,
the need of the customers, working ability of the employees and expected returns. The selected
projects should always aim to maximize the worth of the shareholders. The maximization should
never be for a short time instead it can be important to be long awaited rather than quick to
access and quick to die. Therefore, the company should always consider the project that can hurt
the shareholder for starting the period but offer them benefit for a long time in future. Customers
are the most important part of the organization. The project selected should always aim to offer

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only the best to the customers. If it does so, it will reduce competition, increase returns and
improve shareholder benefits. The project should also aim to meet the need of the employees in
terms of compensation, working condition and motivation. If the above is met, the company can
rest assured that they will offer their best. If they do so, the best product that will meet the needs
of the customers at most will be made.
Other criteria for project selection
Besides opportunity cost, there are several criteria that can be used in project selection. These
criteria include constrained optimization method and benefit measurement method. Under
benefit measurement method, future expected cash inflow and outflow are estimated. Once
estimated benefit/cost ratio, economic value added, payback period and scoring model are
implemented to measure the viability of the project (Monnappa, 2013). The project with a higher
benefit to cost ratio, low payback period, high EVA and a good score is considered. Other
important processes that can be used to come up with decision include calculating present vale,
discounted cash flow and internal rate of return. Project with higher PV and higher IRR should
be chosen (Agfund, 2017). . On some circumstances, some project can have higher PV but lower
IRR. In such circumstances, the project should be chosen since high PV means the wealth of the
shareholders is expected to increase.
The other method that can be used in project selection is constraint optimization method.
Optimization method uses a mathematical model. Key constraints that influence the projects are
normally optimized to obtain a suitable solution that will specify the number of resources to be
used to obtain the desired result. Usually, the project that will require little resources and obtain
maximum profit will be considered. Besides the above-mentioned technique, the non-financial

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technique can always be considered. These techniques always revolve around the needs of the
company strategy. For example, if the strategy is to improve customer relationship, it must be
implemented in project selection. Therefore, the project should always aim to meet the need of
customers in such a case.
Daily business activity is taken with normality, the production rate can be predetermined
depending on the needs hence cost can be managed effectively to avoid losses. For a project,
most of the requirement is not actually known but it depends on projection and estimation.
Therefore, defining an activity as a project is important since necessary amount of resources can
be allocated and used effectively to achieve an unknown but the best result. Besides resources,
time constraint can be appropriately measured. Time is important since it influences the cost and
the return of the project.
An example of the project that I have ever noted in the recent past is the Google driverless car.
This project was initiated in 2009 to develop a car that does not have steering wheels or peddles
but still it is safer to move around (waymo, 2017). A single car is expected to cost more than
$100,000 at inception even though they have not announced when it will be available for sale.

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References
Agfund. (2017). Project Selection Criteria - Agfund. Agfund. Retrieved 6 July 2017, from
http://agfund.org/project-selection-criteria/
Monnappa, A. (2013). Project Selection Methods for Project Management
Professionals. Simplilearn.com. Retrieved 6 July 2017, from
https://www.simplilearn.com/project-selection-methods-article
waymo. (2017). A new way forward for mobility – Waymo. Waymo. Retrieved 5 July 2017,
from https://www.google.com/selfdrivingcar/