Project Risk Management and Cost Management for Apple Inc.

Assessment 3: Individual Report

Executive Summary
The study is based on the well-known company, which is engaged in the technology sector,
named as Apple Incorporation. In this report the key aspect related with the project risk
management and action that are applied in the proposed future project, which assist in the
management and mitigation of the risk. There are some tools and technique which are applied by
the project manager for the determination of execution of the project. In addition, role of the cost
manager is very important for the success of project. Further, funding of the project is another
problem, which should be decided by considering the advantages and disadvantages of source of
finance. Problems related with execution and closing up of project should be determined by
company.

Table of Contents
Part A...............................................................................................................................................4
Selection of Project......................................................................................................................4
Cost management.........................................................................................................................5
Source of finance.........................................................................................................................6
Issues of implementation and closing up.....................................................................................7
Conclusion and Recommendation...............................................................................................7
Part B...............................................................................................................................................8
(a).................................................................................................................................................8
(b).................................................................................................................................................9

PART A
In the given report, Apple Company is considered for the developments of the key aspects of
project risk management.
Selection of Project
Selection of the project is very significant task for the company. Apple Company should invest
in the project related with iPhone, iPad, or Mac. Company should develop innovative or familiar
interface, which easily support the business. Along with this, the product must be secure,
efficient, and reliable. Since, the Apple Company is recognized by its brand name; therefore
company should not make the investment in ordinary type of product.
For the decision regarding the investment in project or not, there are several technique. With this
aspect, Net Present Value method, Internal Rate of return, Payback period, Accounting Rate of
return some useful tools which can be applied by the company to analyze the project. Apple
Company applies NPV method for ascertainment of decision regarding the investment in project
(Joslin, and Müller, 2015).
It is assumed that, company wants to invest in project X and project Y. the initial outflow and
related inflows due to project is given below –
Table 1 Statement of NPV
Cash Flows Project X Project Y
Initial Expenditure $5M $4M
Predicted Cash Inflows