PROJECT

PORTFOLIO
2020
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H.A.R.K.D.Y. Co. has allocated 1.2 Million pesos to be used for projects of the company this year. Six
members of the board proposed their own projects. These six projects possess distinct
characteristics that can impact the company in different ways. H.A.R.K.D.Y. Co. must decide which
among the six projects would be implemented given the limited budget.

This presents how H.A.R.K.D.Y. Co. came up with a decision with the use of Project Portfolio
Matrix and the Prioritization Table.

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Small Scale Power P 6,000,000 8 months – Yes - hazardous -Can distribute
Power supply substances and power electricity to
- 8,000,000 1 year
Plantation equipment every household.

-electricity -power electricity

shortage resources from the
power plant.

Construction Water 5,500,000 3 months No - located in a - can provide water

of Solar- supply & critical area to fields within 50
Powered agriculture hectares
- Area is prone
Irrigation
to landslides

Planting and Agriculture 500,000 11 months – Yes -weather -can generate

Growing of condition additional profit in
1 year
Banana in the business
-plants die due
IBGER FARM
to viruses

Project Free 10,000,000- 1-3 years No -safety hazards -provides shelter and
Humanity housing 30,000,000 needs of homeless

Construction Commercial 30,000,000 2 months Yes - weather - provides a place to

of YKG Hotel Building conditions stay for
tourists/locals
-availability of
construction - boosts tourism
materials

Stay at Home Online 350,000 2-6 months Yes -malfunction of -increase of

Bingo (E- Gaming server customers
Bingo) Application
-hacking of -increase of sales
accounts
-prevent from
-increase of external
bugs in game environment risks

Table 1. Proposed Projects

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 Table 1 presents the information on the proposed projects under H.A.R.K.D.Y
Company. This will help the company to evaluate the projects based on the given data
for comparison and as well as selecting the projects that the company will carry out. It
includes the nature, budget, duration, risks, and benefits of the project. Moreover, it
shows that there are a variety of projects but it leans more towards agriculture and
technology.

This shows the Prioritization Matrix of H.A.R.K.D.Y. Co. where the six proposed
projects are plotted and distributed among the four quadrants based on their NPV and
Technical Feasibility.

Figure 1. Project Prioritization Matrix

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 According to the matrix, the Stay at Home Bingo (E-Bingo), Planting and Growing
of Banana in IBGER Farm, and the Small-Scale Power Plantation are within the Pearl
quadrant. This means that these three projects, among the six, must be nurtured and
supported. They can contribute profit to the company and are more feasible.

The Construction of YKG Hotel falls under the Oyster quadrant or Easy Wins which
indicates that it does not really have much importance for the company but it can be
implemented easily given enough resources.

The Construction of Solar-Powered Irrigation is found in the Bread and Butter

quadrant. This implies that although the project is aligned with the company objectives
and it is important for the company’s growth, it is difficult to implement because the
resources are not enough.

Lastly, The Project Humanity lies under the White Elephant quadrant where it
does not align with the company’s objectives and it is costly to implement. This project
will not be given importance since it cannot contribute to the company.

E-Bingo Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total

Required 20%

Outflows -₱350,000 -₱1,750,000

Inflows ₱500,000 ₱500,000 ₱500,000 ₱500,000 ₱500,000 ₱2,500,000

Net
inflows ₱150,000 ₱150,000 ₱150,000 ₱150,000 ₱150,000 ₱750,000

NPV ₱98,592

Table 2. NPV of Stay at Home Bingo (E-Bingo)

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Banana
Farm Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total

Required 20%

-
Outflows ₱500,000 -₱2,500,000

Inflows ₱250,000 ₱250,000 ₱250,000 ₱250,000 ₱250,000 ₱1,250,000

Net
inflows ₱250,000 ₱250,000 ₱250,000 ₱250,000 ₱250,000 ₱1,250,000

NPV ₱247,653.03
Table 3. NPV of Planting and Growing of Banana in IBGER Farm

Power
Planta-
tion Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total

Required 20%

-
Outflows ₱7,000,000 ₱35,000,000

Inflows ₱6,500,000 ₱6,500,000 ₱6,500,000 ₱6,500,000 ₱6,500,000 ₱32,500,000

Net
inflows ₱6,500,000 ₱6,500,000 ₱6,500,000 ₱6,500,000 ₱6,500,000 ₱2,500,000

NPV ₱12,438,978.91

Table 4. NPV of Small-Scale Power Plantation

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YKG
Hotel Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total

Required 20%

Outflows -₱30,000,000 -₱150,000,000

Inflows ₱20,000,000 ₱20,000,000 ₱20,000,000 ₱20,000,000 ₱20,000,000 ₱100,000,000

Net
inflows ₱20,000,000 ₱20,000,000 ₱20,000,000 ₱20,000,000 ₱20,000,000 ₱50,000,000

NPV ₱29,812,242.80

Table 5. NPV of Construction of YKG Hotel

NPV = (Cash flows)/(1+r) i

Where,
Cash flows= Cash flows in the time period
r = Discount rate
i = time period

From the tables above, we have calculated the NPV for each project not including
the two projects namely the Construction of Solar-Powered Irrigation and Project
Housing because the projects do not generate profit. As shown in the formula, we need
to discount them at a certain rate to extract the present value of the cash flows. This
rate is calculated for the investment, considering the return on investment with
equivalent risk or borrowing cost. In other words, we have come to a 20% discount
required rate which was set by the company.

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 In solving, the cash flows are the inflows that we estimated and we divided the
clash flows to (1 + r) where r is the discount rate which is 20% and multiplied it to the i
which is the time period. And the time period we used 1 to 5 from year 1 up to year 5
respectively. After determining the values of each needed value in the formula, we got
the sum from year 1 to year 5 and we subtracted the sum from the net inflow and the
result is the NPV.

1. (Cashflow)/(1+.20)1 + (Cashflow)/(1+.20)2 + (Cashflow)/(1+.20)3 +

(Cashflow)/(1+.20)4 + (Cashflow)/(1+.20)5 = SUM

2. SUM - Net inflows = NPV

H.A.R.K.D.Y. Co. has set an 8-criteria prioritization table to assess each project. We
used a scale between 0-10 to rate a project for each criterion. The rating would be
multiplied by the weight of the respective criterion to get the weighted total per project.

How important is the project? Do we need it now or can it wait?

Is the project related to our company’s strategic objectives? Does it match the image
we are trying to portray?

Will customers benefit from it? Does it make them need/want us?

How long will it take to finish the project?

Is the project profitable? Can the company earn profit from those projects?

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 Do the project effectively and efficiently contribute to the growth of the company?
Does the project effectively and efficiently improve the internal and external
environment of the company?

Is the project susceptible to any changes and crisis? Can the project adapt to any form
of conformity? Is the project flexible to the environment’s demands?

Can the company accommodate and finance well the allocated budget?

CRITERIA Urgency Relatedness Customer Project Profitability Effectiveness Adaptability Budget Weighted
to company loyalty duration & Efficiency Justification Total
objectives

WEIGHT 2.5 3.0 1.0 2.0 3.0 2.0 1.25 3.0

Small Scale 7 8 9 5 10 8 7 5 130.25

Power
Plantation

Planting and 9 10 9 6 10 9 6 10 159

Growing of
Banana in
IBGER
FARM

Construction 7 10 4 8 0 7 3 7 106.25
of Solar-
Powered
Irrigation

Construction 6 7 6 9 6 6 6 1 100.5
of YKG
Hotel

Project 7 5 6 4 0 8 5 1 78.75
Humanity

Stay at 5 4 7 10 10 8 8 10 137.5
Home Bingo
(E- Bingo)

Table 6. Prioritization Table

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 Table 6 shows the rating of each project per criterion and its weighted total. The
higher the project’s weighted total, the more it will be prioritized over the others based
on this prioritization table.

The results show the following order of priority of the six proposed projects:

1. Planting and Growing of Banana in IBGER FARM

2. Stay at Home Bingo (E-Bingo)
3. Small Scale Power Plantation
4. Construction of Solar-powered Irrigation
5. Construction of YKG Hotel
6. Project Humanity

Given the budget of 1.2 million pesos, H.A.R.K.D.Y. Co. will not be able to
implement all six projects at once. However, it would be able to push through first the
top two projects, namely the Planting and Growing of Banana in IBGER FARM and the
Stay at Home Bingo (E-Bingo).

These two projects will serve as fundraisers to come up with enough funding for
the third project which is the Small-Scale Power Plantation. The team will focus first in
implementing the E-bingo since it only takes an estimated 2-6 months to get it up and
running, afterwards, the Banana Farm will follow. The profit raised from these two
projects will be put in a schedule to determine how much is the target budget per month
to continue with the Small-Scale Power Plantation.

Overall, H.A.R.K.D.Y. Co. will potentially implement the three proposed profitable
projects. They will communicate regularly and give enough attention to each project to
achieve the monthly goals.

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