MGMT 340 Week 2 - Problems and Exercises

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Chapter 3

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

4. Suppose  that  you  have  been  contracted  by  a jewelry store to manage a project to create a new  inventory  tracking  system.  Describe your  initial  approach  to  the  project.  What should your first activity be? What information would you need? To whom might you need to speak?

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?