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Toolkit 3 - Systems Analysis and Design 8th Edition Toolkit...

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Systems Analysis and Design 8th Edition Toolkit 3 Financial Analysis Tools
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Toolkit Objectives Define economic feasibility Classify costs and benefits into various categories, including tangible or intangible, direct or indirect, fixed or variable, and developmental or operational Understand chargeback methods and how they are used 2
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Toolkit Objectives Use payback analysis to calculate the length of time that it takes for a project to pay for itself Use return on investment analysis to measure a project’s profitability Use present value analysis to determine the value of a future project measured in current dollars 3
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Introduction You need to know how to calculate costs and benefits when you conduct preliminary investigations, evaluate IT projects, and make recommendations to management Financial analysis tools are important throughout the systems development life cycle 4
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Describing Costs and Benefits Economic feasibility Total cost of ownership (TCO) 5
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Describing Costs and Benefits Cost Classifications Tangible costs Intangible costs Direct costs Indirect costs or overhead expenses 6
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