66 y ear 0 y ear 1 year 2 y ear 3 y ear 4 year 5

This preview shows page 13 - 16 out of 17 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Systems Analysis and Design
The document you are viewing contains questions related to this textbook.
Chapter 2 / Exercise 9
Systems Analysis and Design
Tilley
Expert Verified
66 Y ear 0 Y ear 1 Year 2 Y ear 3 Y ear 4 Year 5 Totals Net Economic Benefit $0 $50,000 $55,000 $60,000 $65,000 $70,000 Discount Rate (.10) 1.0000 0.909091 0.826446 0.751315 0.683013 0.620921 PV of Benefi ts $0 $45,455 $45,455 $45,079 $44,396 $43,464 NPV of all Benefits $0 $45,455 $90,909 $135,988 $180,384 $223,848 $223,848 One-Time Costs $90,000 Recurring Costs $0 $60,000 $60,000 $60,000 $60,000 $60,000 Discount Rate (.10) 1.0000 0.9091 0.8264 0.7513 0.6830 0.6209 PV of Recurring C osts $0 54,545 $49,587 $45,079 $40,981 $37,255 NPV of all Costs $90,000 $144,545 $194,132 $239,211 $280,192 $317,447 $317,447 Overall NPV ($93,599) Overall ROI -0.29 Break-even Analysis Y early NPV C ash Flow ($90,000) ($9,091) ($4,132) $0 $3,415 $6,209 Overall NPV C ash Flow ($90,000) ($99,091) ($103,223) ($103,223) ($99,808) ($93,599) Project break-even will not occur during the life of this system. Problem and Exercise #12
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Systems Analysis and Design
The document you are viewing contains questions related to this textbook.
Chapter 2 / Exercise 9
Systems Analysis and Design
Tilley
Expert Verified
Modern Systems Analysis and Design, 3rd edition Instructor’s Manual 13. The following spreadsheet summarizes the economic analysis requested in this question. 14. Students should submit an answer similar to the following: The group members need to share documents and peripheral devices, such as laser printers. Their work requires them to collaborate and share documents, yet they have had no efficient way to do so. It was determined that it would be more efficient for the group members to use a network to share files than to be continually sharing physical documents or exchanging diskettes. In addition, using a network would enable them to buy and easily share one laser printer rather than having to buy several laser printers or share one laser printer that is not networked. The system is to include replacement PCs for each of the nine group members, plus one more expensive PC to serve as a repository for data and unique software applications. There are many other such LANs throughout the organization, each connected to the organization’s network. At 67 Y ear 0 Year 1 Y ear 2 Year 3 Totals Net Economic Benefit $0 $85,000 $85,000 $85,000 Discount Rate (.12) 1.0000 0.892857 0.797194 0.711780 PV of Benefits $0 $75,893 $67,761 $60,501 NPV of all Benefits $0 $75,893 $143,654 $204,156 $204,156 One-Time C osts ($75,000) Recurring Costs $0 ($35,000) ($35,000) ($35,000) Discount Rate (.12) 1.0000 0.8929 0.7972 0.7118 PV of Recurring C osts $0 (31,252) ($27,902) ($24,912) NPV of all C osts ($75,000) ($106,252.00) ($134,154) ($159,066) ($159,066) Overall NPV $45,090 Overall ROI 0.28 Break-even Analysis Y early NPV C ash Flow ($75,000) $44,641 $39,860 $35,589 Overall NPV C ash Flow ($75,000) ($30,359) $9,501 $45,090 Project break-even occurs between years 1 and 2 Use first year of positive cash flow to calculate break-even fraction 0.762 Actual break-even occurs at 1.76 years Problem and Exercise #13
Chapter 6 Initiating and Planning Systems Development Projects this point there are no foreseeable constraints to implementing the system. This is one of the last offices to be given a LAN. It is important that this initial section of the Baseline Project Plan be complete, accurate, and understood by all. Otherwise, there might be disagreements later about what this system will entail, and an inadequate or unwanted system might be implemented. 15. For the system described above, alternative configurations use different LAN operating systems. In addition, students may choose not to replace the workgroup’s existing PCs, or they may choose to replace their PCs with another type of PC. For example, they may choose to upgrade all of the PCs with IBM-compatible PCs, or they may replace the PCs with another hardware platform.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture