MGMT 340 Week 2 - Problems and Exercises

MGMT 340 Week 2 - Problems and Exercises

2. What are some sources of risk in a systems analysis and design project, and how does a projectmanager cope with risk during the stages of project management?

4. Suppose  that  you  have  been  contracted  by  ajewelry store to manage a project to create anew  inventory  tracking  system.  Describe your  initial  approach  to  the  project.  Whatshould your first activity be? What informationwould you need? To whom might you need tospeak?

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

6. Assuming monetary benefits of an informationsystem  at  $85,000  per  year,  one-time  costs  of$75,000, recurring costs of $35,000 per year, adiscount  rate  of  12  percent,  and  a  five-yeartime horizon, calculate the net present value ofthese costs and benefits of an information system.  Also  calculate  the  overall  return  on  investment  of  the  project  and  then  present  abreak-even analysis. At what point does breakeven occur?