Pearson eText for Essentials of Systems Analysis and Design -- Instant Access (Pearson+)
6th Edition
ISBN: 9780137612420
Author: Joseph Valacich, Joey George
Publisher: PEARSON+
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Chapter 4, Problem 17PE
Program Plan Intro
Economic feasibility analysis of an
Monetary benefits of an information system = $85,000 per year.
One-time costs = $75,000
Recurring cost = $35,000 per year.
Discount rate = 12%
Time period = 5 years
Explanation of Solution
Overall Return on Investment (ROI):
Overall return on investment can be calculated as:
Explanation of Solution
Break-Even Analysis (BEA):
- Break even analysis is carried out by determining NPV of yearly cash flows.
- The yearly cash flows are calculated by subtracting present values of recurring costs from the present value of yearly benefits.
- The overall NPV cash flow is total cash flow of the preceding years.
- After determining NPV yearly cash flows, it is found that break even occurs between year one and two.
- This is because year two is the very first year where overall NPV is positive...
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Assuming monetary benefits of an informationsystem at $85,000 per year, one-time costs of$75,000, recurring costs of $35,000 per year, adiscount rate of 12 percent, and a five-year timehorizon, calculate the net present value of thesecosts and benefits of an information system.Also calculate the overall return on investmentof the project and then present a break-evenanalysis. At what point does break-even occur?
Given the following information for a one-year project, answer the following questions. Recall that PV is the planned value, EV is the earned value, AC is the actual cost, and BAC is the budget at completion.
PV = $23,000
EV = $20,000
AC = $25,000
BAC = $120,000
What is the cost variance, schedule variance, cost performance index (CPI), and scheduleperformance index (SPI) for the project?
How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget?
Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned?
Use the schedule performance index (SPI) to estimate how long it will take to finish this project.
Sketch the earned value chart based for this project, using Figure 7-5 as a guide.
university in the process to develop a new attendance system for the students.
(a)
State an established methodology to ensure the project is successful.
(b)
Name THREE (3) major stakeholders for the project.
(c)
Apply the methodology in Q5 (a) for the project and discuss ALL the
steps needed, each with specific action.
Chapter 4 Solutions
Pearson eText for Essentials of Systems Analysis and Design -- Instant Access (Pearson+)
Ch. 4 - Prob. 1MCh. 4 - Prob. 2MCh. 4 - Prob. 3MCh. 4 - Prob. 4MCh. 4 - Prob. 5MCh. 4 - Prob. 6MCh. 4 - Prob. 7MCh. 4 - Prob. 8MCh. 4 - Prob. 9MCh. 4 - Prob. 10M
Ch. 4 - Prob. 11MCh. 4 - Prob. 12MCh. 4 - Prob. 13MCh. 4 - Prob. 14MCh. 4 - Prob. 15MCh. 4 - Prob. 16MCh. 4 - Prob. 17MCh. 4 - Prob. 18MCh. 4 - Prob. 19MCh. 4 - Prob. 20MCh. 4 - Prob. 21MCh. 4 - Prob. 22MCh. 4 - Prob. 1RQCh. 4 - Describe several project evaluation criteria.Ch. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Prob. 5RQCh. 4 - Prob. 6RQCh. 4 - What are the potential consequences of not...Ch. 4 - Prob. 8RQCh. 4 - Prob. 9RQCh. 4 - Prob. 10RQCh. 4 - Prob. 11RQCh. 4 - Prob. 12PECh. 4 - Prob. 13PECh. 4 - Prob. 14PECh. 4 - Prob. 15PECh. 4 - Prob. 16PECh. 4 - Prob. 17PECh. 4 - Prob. 18PECh. 4 - Prob. 19PECh. 4 - Prob. 20PECh. 4 - Prob. 21PECh. 4 - Assume monetary benefits of an information system...Ch. 4 - Prob. 23PECh. 4 - Prob. 24PECh. 4 - Prob. 25PECh. 4 - Prob. 26PECh. 4 - Prob. 27PECh. 4 - Prob. 28PECh. 4 - Prob. 29DQCh. 4 - Prob. 30DQCh. 4 - Prob. 31DQCh. 4 - Prob. 32DQCh. 4 - Prob. 33CPCh. 4 - Prob. 34CPCh. 4 - Prob. 35CPCh. 4 - Prob. 36CQCh. 4 - Prob. 37CQCh. 4 - Identify a preliminary set of tangible and...Ch. 4 - Prob. 39CQCh. 4 - If you were assigned to help Jim with this...Ch. 4 - Prob. 41CQCh. 4 - Prob. 42CQCh. 4 - In Question 4, you analyzed the risks associated...
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