Using the Meredith and Mantel textbook, Project Management: A Managerial Approach, review Chapter 2, “Strategic Management and Project Selection,” Pan-Europa Case Study, pp. 82-89. Once you have reviewed the case study, prepare a minimum of 600 words in length defending your response to the following questions:
Strategically, what must Pan-Europa do to keep from becoming the victim of a hostile takeover? What should Pan-Europa do now that they have won the price war? Who should lead the way for Pan-Europa?
Using net present value (NPV), conduct a straight financial analysis of the investment alternatives and rank the projects. Which NPV of the three should be used? Why? Suggest a way to evaluate the effluent project.
What aspects of the projects might invalidate the ranking you just derived? How should we correct for each investments time, value of money, unequal lifetimes, riskiness, and size?