Assignment

Assignments:

Problems/Exercise

Chapter 3:

______ 2. An end product in a phase of the SDLC.

Project Closedown- The final phase of the project Management Process, which focuses on bringing a project to an end.

______ 4. A controlled process of initiating, planning, executing, and closing down a project.

Project Manager- A systems analyst with a diverse set of skills, such as management, leadership, technical, conflict management, and customer relationship; who is responsible for the initiating, planning, executing, and closing down a project.

Chapter 4:

1. The economic analysis carried out during project identification and selection is rather superficial. Why is this? Consequently, what factors do you think tend to be most important for a potential project to survive this first phase of the life cycle?

6. 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?

Monetary benefit of info system $85,000 per year

One time cost $75,000

Recurring cost $35,000 per year

Discount rate 12%

Time horizon $5 years

Hence, every year net benefit $50,000

Cash flow will be as:

Year cost benefit PV of cost PV of Benefits

0 75000 75000.0 0.0

1 35000 85000 31250.0 75892.9

2 35000 85000 27901.8 67761.5

3 35000 85000 24912.3 60501.3

4 35000 85000 22243.1 54019.0

5 35000 85000 19859.9 48231.3

NPV 201167.2 306406.0

NPV of all costs= 201167.2

NPV of all Benefits= 306406.0

NPV of...