ENTR 3160
Summer 2015
Assignment 1:
Assessing Economic Feasibility
Instructions
In this assignment, you will create an Excel workbook to help you assess the economic feasibility of a major information systems project. You are provided with two resources:
1. The scenario: The context of the business decision is the replacement of an information system at a large firm. You will find the facts required for your analysis in the scenario.
2. A skeleton Excel file: You are provided with a multi-page Excel workbook with which to build a model for estimating the net present value (NPV) of the information systems project. Submission
This is a group assignment. You should not discuss your answers with other groups.
Assignment 1
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Savings from lower inventory levels are expected to be $20,000 per year for each year of the project’s life.
Most of the costs to build the system are development costs: hardware, software, and personnel. Systems Analysts
Programmer Analysts
GUI Designer
Telecommunications Specialist
System Architect
Database Specialist
System Librarian
Development Training
Hardware
Software
$
$
$
$
$
$
$
$
$
$
40,000
35,000
8,000
2,500
5,000
675
3,750
14,000
18,700
15,650
Janine expects the system will take one full year to implement before any benefits are shown.
Once the system achieves operational status, there will be ongoing costs for software licenses, maintenance, and upgrades to system functionality, as noted below. These are the projected operational costs in the first year of operations; they are expected to grow at a rate of 2.5% per year thereafter.
Labour: Programmer Analysts
Labour: System Librarian
Hardware Maintenance
Software Maintenance
Preprinted Forms
$
$
$
$
$
2
8,750
300
995
525
3,300
Requirements
Since the economic model for this project is based on many assumptions, it is important that other users be able to perform their own “what-if” analysis using your Excel file. As a consequence, design features such as a well-structured workbook and an “auditable” model are critical. 1. Your Excel workbook must contain four pages: model, assumptions, and a chart showing the breakeven
Please do the following analyses using the data in the “DoubleClick” sheet of the excel file
Build an Excel spreadsheet to estimate how much a prospective customer is worth, depending on whether that customer is offered a rebate. What do you learn from the updated spreadsheet? Explain the logic behind your findings and
4. Conduct a feasibility analysis on the company, being sure to consider its market potential, industry attractiveness, and
You must use this format to prepare your case study analysis and recommendations for course assignments.
6. If you were assigned to Jim’s team for this project, when in the project schedule (in what phase of after which activities are completed) do you think you could develop an economics analysis of the proposed system? What economic feasibility factors do you think would be relevant?
For Question 5, fully address management’s concerns as part of your written analysis using the new or the previous calculations to support your recommendation/explanation. As part of your written analysis, include how management might use these calculations to make decisions. The written analysis should be supported by at least 2 scholarly sources, excluding the textbook.
3.Open textbook to page 214 and choose 5 key terms. Define the term and explain where you would use this feature in an Excel worksheet.
When I made the decision to continue my education, my initial motivation was the opportunity to potentially advance my career at my current employer. In the time that I have been with this employer, I have learned how vital the use of Microsoft Office truly is in today’s business world, as I utilize these functions throughout the day to complete numerous tasks and responsibilities. As mentioned in my discussion post for this unit, Excel has become an essential tool for me to keep track of various areas of shipment information that must be reported to upper management, for instance costs, due dates, and quantities.
The presentation is based on the 2010 version of excel, however through the tutorial it compares what features were replaced or taken away from the 2007 excel version. Excel is a spreadsheet program that allows you to store, organize, and analyze information. During this tutorial, you will learn your way around the Excel 2010 environment, including the new backstage view, which replaces the Microsoft Office button menu from Excel 2007. Also, it indicated how to use and modify the ribbon and the quick access toolbar, as well as how to create new workbooks and open existing ones (GCF Global, 2015).
1. A spreadsheet with the lease or buy NPV analysis has been given to you.
The below questions are of two types. Those with a calculator figure ( ) indicate the involvement of a quantitative analysis (might also involve some qualitative discussion). The other questions are to initiate a broader discussion of the case study based on the managerial insights that can be developed from quantitative
Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States
Information Technology Management: Unification of the actual and future information systems used by Incodepf and the new global innovations in technology
1. How would you do analysis of environments so that the company to be able to respond to modern conditions?
Green IT benefits the environment by reducing the emission of toxic and hazardous substances into the air by 15 percent (The climate Group, 2008).