Acme Group Inc. is a multinational strategy consultancy with global headquarters in Melbourne, Australia.
The company offers strategic solutions to its clients and has an annual revenue of $500M. In order to
maintain their competitive position in the marketplace Acme Group needs to continually look for
opportunities to invest in new technologies. The Chief Information Officer, Jane Porter, is currently
considering twelve technology proposals put forth by three divisions within the Group – Marketing, R&D,
and HR.
A number of the proposals are for joint projects, to be undertaken with partner organisations which Acme
Group has well-established strategic alliances.
Each division has provided Jane with the capital expenditures required for each project over the next three
years and, based on the expected revenue to be generated by each project, the NPV of each project as shown
below, and the ownership %.