Fundamentals of Information Systems
Fundamentals of Information Systems
8th Edition
ISBN: 9781305082168
Author: Ralph Stair, George Reynolds
Publisher: Cengage Learning
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Chapter 6, Problem 1.2DQ
Program Plan Intro

The one who should have a say in defining the primary constraints for choosing the location for public resources such as power plants, prisons, and public schools.

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What challenges arise when trying to estimate costs for large-scale, multi-year projects?
Scenario One: Assume you are put in charge of launching a new website for a local nonprofit organization. What costs would you need to account for? Make a list of expected costs and benefits for the project. You don’t need to list values, just sources of expense. Consider both one-time and recurring costs. Consider the situation you addressed in the previous question. Create numeric cost estimates for each of the costs you listed. Calculate the net present value and return on investment. Include a break-even analysis. Assume a 10 percent discount rate and a five-year time horizon. Scenario Two: Assuming monetary benefits of an information system at $85,000 per year, one-time costs of $75,000, recurring costs of $35,000 per year, a discount rate of 12 percent, and a five-year time horizon, calculate the net present value of these costs and benefits of an information system. Also calculate the overall return on investment of the project and then present a break-even analysis. At what…
Briefly describe the various types of project feasibility that must be evaluated.
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