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Track 2000
Case 2: Over budget and not fine
As shown in Figure 6, a project has a marginal Return on Investment [$50,000] and the project tracking reports indicate that a cost blowout of 30% will be incurred in the development phase.
The project will not be successful as the reduced return on investment [$20,000] is not acceptable to the business groups. In this case, the project costs would need to be reduced or the project cancelled.
