Assuming monetary benefits of an information system at $85,000 per year
5.38: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 point does breakeven occur?
5.56 Look over the scope statement (PE Figure 5-1). If you were an employee at Petrie Electronics, would you want to work on this project? Why or why not?
5.57 If you were part of the management team at Petrie Electronics, would you approve the project out-lined in the scope statement in PE Figure 5-1? What changes, if any, need to be made to the document?
5.59 What do you consider to be the risks of the project as you currently understand it? Is this a low-, medium-, or high-risk project? Justify your answer. Assuming you were part of Jim’s team, would you have any particular risks?
5.61 If you were assigned to Jim’s team for this project, when in the project schedule (in what phase or after which activities are completed) do you think you could develop an economic analysis of the pro-posed system? What economic feasibility factors do you think would be relevant?
The book used is Modern Systems Analysis and Design
Author: Joseph Valacich; Joey F. George
Requirements: 2 pages maximum | .doc file
Answer preview Assuming monetary benefits of an information system at $85,000 per year
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