Essentials of Systems Analysis and Design (6th Edition)
6th Edition
ISBN: 9780133546231
Author: Joseph Valacich, Joey George
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 21PE
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 = 3 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 Overall NPV is non-negative (positive)...
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
You have been made project coordinator for an upcoming tourism workshop to be held in the island of Anguilla. Local, regional and international participants will be in attendance. You have invited 25 participants and 12 presenters as part of your planning. In addition, there are several other tasks to be performed: i. Letters of invitation are to be sent with relevant information. ii. Overall estimates for workshop funding need to be calculated. iii. During the workshop, all attendees and equipment requests will be documented for reporting purposes and also to be used for future analysis when compared with other possible workshops. iv. Final reports will be written to document those persons who attended the workshop as well as to compare the pre- and post-funding estimates. v. Extra expenses incurred at the workshop are also to be noted. vi. A brief presentation highlighting various aspects of Anguilla’s culture and island is to be made to all participants at the beginning of the…
If 10 requirements defects are removed during design phase, and the relative cost is 2.5,what is the cost to remove these defects?
The projected number of defects submitted, resolved, and remaining open inthe first four weeks of a test project are given in the upper half of Table 13.18.The actual numbers of submitted and resolved defects are shown in the lowerhalf of the table. Calculate the actual number of open defects?
Chapter 4 Solutions
Essentials of Systems Analysis and Design (6th Edition)
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...
Knowledge Booster
Similar questions
- As a project manager of a Software project, you have received given data about the different type of Issues identified in the project: – Issue 1 – 85 occurrences; Issue 2 – 125 occurrences; Issue 3 – 28 occurrences; Issue 4 – 395 occurrences; Issue 5 – 185 occurrences; Issue 6 – 128 occurrences; Issue 7 – 85 occurrences; Issue 8 – 169 occurrences; Issue 9 – 148 occurrences; Issue 10 – 209 occurrences. Which diagram you will use to prioritize the Issues? Generate the diagram using any tool and paste it here.arrow_forwardHow should we attack problem, globally or analytically? Do we need to jump into problems immediately or pause to reflect before starting?arrow_forwardAs a senior studying IT at CTU, your supervisor has requested that you present a plan for consideration and approval. Produce a research proposal of about 1600 words on a topic that interests you, paying special attention to the following: Five sections make up a research paper: the introduction (1), the methods (II), the issue statement (II), the goals (III), the significance (IV), and the literature review (V).arrow_forward
- SYSTEM ANALYSIS AND DESIGN ( COMPUTER SCIENCE) Instruction: As a system analyst, you are required to analyze and propose a system design for your client company to help in their daily business process. Choose ONE (1) of the following system and discuss the development process in detail. Online Tuition Center - Online Babysitter - Online Cleaning Service Online Event Management - Online Emergency Management - Online Personal Shopper Question 1 a) Identify the appropriate system development method and explain why it is suitable for the system. b) List all the possible functions applicable to the system. c) Create a Gantt chart for the system analysis and design proposal. You may use the outline provided as a guideline for your Gantt Chart Outline for Gantt chart System Investigation - Introduction - System Request Form - Project Proposal - Feasibility Studies - Fact Finding Techniques Used - List of End-user Requirement System Analysis - Proposed Actors & Use cases - Proposed Use case…arrow_forwardWhat challenges can arise during the requirement analysis phase, and how can they be effectively addressed to prevent scope creep?arrow_forwardA government project for tourism enhancement has initiated by the government. The project will itself carried out for 1 year. Meanwhile they need to add a web based information system(WBIS) which should also be fully functional after one year. The requirements are yet not finalized for the WBIS but a core set of almost 100 requirements are available with the project organizers. The detailed requirements can be finalized with the time period of one year. What type of process model can be used by you for this project. Write detail of phases as well as artifacts, deliverable and milestones for each phasearrow_forward
- At Riverside Financial, where you work as a project manager, you have been asked to conduct user training sessions during the implementation phase for a new information system. You must develop a specific schedule for the tasks (the estimated task duration for each is shown in parentheses): First, you need to send an e-mail message to all department managers announcing the training sessions (3 days). After the e-mail message goes out, two tasks can begin at the same time: You can develop the training material (7 days) and confirm arrangements for the training facility you plan to use (15 days). As soon as the training material is complete, you can work on two tasks at once: Arrange to have copies of handout material printed (7 days) and develop a set of PowerPoint slides (8 days). When the PowerPoint slides are ready, you conduct a practice training session with the instructor who will assist you (3 days). Finally, when the practice session is over, the handout material is ready, and…arrow_forwarduse case diagram given blow, draw deployment diagram accordinglyarrow_forwardDoes the project sponsor play the same role at each stage of the SDLC?arrow_forward
- Answer the following questions based on project planning Software Engineering: 1. Explain the looping process that occurs from the project scheduling! What criteria can be used to assume the loop process can be terminated?2. What is the difference between forward scheduling and backward scheduling, use the example [https://iansommerville.com/software-engineering-book/web/planning-activities/]? Also compare the Critical Path results of the two scheduling approaches?3. Is there a difference in Release Planning vs. Iteration Planning in making software using an Agile approach?4. Explain the level of accuracy of the Project Cost Estimation with COCOMO II?5. Explain how to get the estimated source line of code (SLOC)?arrow_forwardYou have been made project coordinator for an upcoming tourism workshop to be held in the island of Anguilla. Local, regional and international participants will be in attendance. You have invited 25 participants and 12 presenters as part of your planning. In addition, there are several other tasks to be performed: Letters of invitation are to be sent with relevant information. Overall estimates for workshop funding need to be calculated. iii. During the workshop, all attendees and equipment requests will be documented for reporting purposes and also to be used for future analysis when compared with other possible workshops. Final reports will be written to document those persons who attended the workshop as well as to compare the pre- and post-funding estimates. Extra expenses incurred at the workshop are also to be noted. A brief presentation highlighting various aspects of Anguilla’s culture and island is to be made to all participants at the…arrow_forwardh) Based on the analysis finding, write a short report and recommend the options in terms of achieving higher solvability.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Information Systems (MindTap Course...Computer ScienceISBN:9781305971776Author:Ralph Stair, George ReynoldsPublisher:Cengage Learning
Principles of Information Security (MindTap Cours...Computer ScienceISBN:9781337102063Author:Michael E. Whitman, Herbert J. MattordPublisher:Cengage Learning
Principles of Information Systems (MindTap Course...
Computer Science
ISBN:9781305971776
Author:Ralph Stair, George Reynolds
Publisher:Cengage Learning
Principles of Information Security (MindTap Cours...
Computer Science
ISBN:9781337102063
Author:Michael E. Whitman, Herbert J. Mattord
Publisher:Cengage Learning