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MGMT304_Wk 3_Homework

MGMT304_Wk 3_Homework - MGMT304 Week 3 Homework Case Study...

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MGMT304 Week 3 Homework Case Study Pine Valley Furniture Case Study Chapter 4, Case Problems, question 1, parts a through d (pp. 127-128). a. How were Pine Valley Furniture’s projects initiated? What is the focus for each of the new systems? Supervisor Jim Woo held an initial staff meeting to discuss the details of the Pine Valley Furniture (PVF) development projects, a Customer Tracking System (CTS) and a Web Store (WS). The focus for the CTS is to allow the PVF marketing group the ability to track customer purchasing activity and sales trends more efficiently. The focus for the WS is to facilitate online purchasing with a focus on corporate purchasing. b. Modify the Customer Tracking System’s economic feasibility analysis to reflect the modifications mentioned in this case problem. Use a discount rate of 10 percent. After the changes are made, what are the new overall NPV, ROI, and BEP? Discount Rate 10% Overall NVP = $21,234 Overall ROI = 0.13 Actual BEP occurs at 3.18 years.
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