Systems Analysis and Design REVIEW QUESTIONS 23 Contrase the following terms: 5.
ID: 399063 • Letter: S
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Systems Analysis and Design
REVIEW QUESTIONS 23 Contrase the following terms: 5.28 What are the potential consequences of not assessing the technical risks associated with an information sysiems de velopment project a. Breakeven analysis; present value; net present value; re- b. Economic feasibility; legal and comracual feasibility 5.29 In what ways could you identify that one IS project is riskier C. Intangible benefit tangible benefit turn investment than another? operational feasibility political feasibiliy; schedule feasibility .30 What are the ypes or categories of benefits of an IS .31 What intangible benefits might an organization obtain 5.32 Describe the concept of the time value of money. How projeci? from the development of an information system? does the discount rate affect the value of $1 today versus 24 List and describe the steps in the project initiation and .25 What is contained in a BPP? Are the content and format of 5.26 Describe three commonly used methods for performing 533 Describe the sirucured walk-through process. What roles 5.27 List and discuss the different types of project feasibility d. Intangible cost; tangible cost planning process. all baseline plans the same? Why or why not economic cost-benefit analysis. faciors. Is any factor most imponant Why or why not one year from soday need to be performed during a walk-through?Explanation / Answer
Ans 5.23:
a) Break-even analysis: It deals with calculation of a break-even point where the generated revenue is equal to the cost occurred to generate this revenue. It helps in determining the number of sales needed to cover total fixed costs.
Present value: It deals with providing the value of a sum of money today which is to be received in future at a specified rate of return. It calculates the current worth of the future receivables.
Net present value: Net present value is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgeting to analyze the profitability of a projected investment or project.
Return on investment: Return on Investment evaluates the efficiency of an investment or compare the efficiency of a number of different investments. It measures the amount of return on an investment, relative to the investment’s cost.
b) Economic Feasibility: It is an analysis of a project's costs and resulting revenues to determine that whether the project will be successfully completed.
Legal and contractual feasibility: It deals with the analysis of potential legal and contractual ramifications concerned with the project that has to be taken up.
Operational feasibility: It analyses how a project plan satisfies the requirements identified in the requirements analysis phase of system development. It determines whether the project's objective can be achieved.
Political feasibility: It is the process of evaluating how key stakeholders within the organization view the proposed system.
Schedule feasibility: The schedule feasibility determines the timeframe of the project and evaluates if the project can be completed on schedule time or not.
c) Intangible benefit: These are those benefits that have a significant business impact but are not measurable in monetary terms and cannot be reported for formal accounting purposes. They are also called soft benefits.
Tangible benefit: These are those benefits that are visible and are measurable in monetary terms.
d) Intangible cost: It is an unquantifiable cost relating to an identifiable source. Intangible costs represent a variety of expenses such as losses in productivity, customer goodwill, drops in employee morale, loss of brand value or damage to corporate reputation.
Tangible cost: A tangible cost is a quantifiable cost related to an identifiable source or asset. It can be directly connected to a material item used to conduct operations or run your business. Tangible costs represent expenses arising from such things as purchasing materials, paying employees or renting equipment.
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