1) Perform a cost-benefit analysis using the following data: Direct cost: 10 laptops 2,000.00 each Server 2,000.00 Network Installation 15,000.00 Software 20,000.00 Indirect costs: Training 15,000.00 Annualized Benefits Increased Capacity 100,000.00 Analysis based on results: Parts a,b,c a) State if the number of years represents a good or back payback period? b) Is it a good ratio? c) How likely ate the benefits to be realized and how will a decision be made?

1) Perform a cost-benefit analysis using the following data: Direct cost: 10 laptops 2,000.00 each Server 2,000.00 Network Installation 15,000.00 Software 20,000.00 Indirect costs: Training 15,000.00 Annualized Benefits Increased Capacity 100,000.00 Analysis based on results: Parts a,b,c a) State if the number of years represents a good or back payback period? b) Is it a good ratio? c) How likely ate the benefits to be realized and how will a decision be made?

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter19: Managing Quality And Performance

Section: Chapter Questions

Problem 10DQ

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Concept explainers

Six Sigma

Six Sigma’s usage for measurement standards goes back to Carl Friedrich Gauss, 1855, when the normal curve concept was introduced.

Quality Control

Quality Management System (QMS), Quality Assurance (QA) and Quality Control (QC) are part of Quality umbrella.

Question

Managing Quality Improvement Teams

1) Perform a cost-benefit analysis using the following data:

Direct cost:

10 laptops 2,000.00 each

Server 2,000.00

Network Installation 15,000.00

Software 20,000.00

Indirect costs:

Training 15,000.00

Annualized Benefits

Increased Capacity 100,000.00

Analysis based on results: Parts a,b,c

a) State if the number of years represents a good or back payback period?

b) Is it a good ratio?

c) How likely ate the benefits to be realized and how will a decision be made?

Please show the full solution and analysis for this case.

Thanks

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