{"id":3234,"date":"2018-01-16T16:19:54","date_gmt":"2018-01-16T21:19:54","guid":{"rendered":"http:\/\/community.mis.temple.edu\/mis5203sec001sec701sp2018\/?page_id=3234"},"modified":"2018-01-16T16:19:54","modified_gmt":"2018-01-16T21:19:54","slug":"week-3-practical-assignment","status":"publish","type":"page","link":"https:\/\/community.mis.temple.edu\/mis5203sec001sec701sp2018\/week-3-feb-1-2018\/week-3-practical-assignment\/","title":{"rendered":"Week 3 &#8211; Practical Assignment"},"content":{"rendered":"<h3><strong>Scenario One:<\/strong><\/h3>\n<ul>\n<li style=\"font-weight: 400;\">Assume you are put in charge of launching a new website for a local nonprofit organization. What costs would you need to account for? Make a list of expected costs and benefits for the project. You don\u2019t need to list values, just sources of expense. Consider both one-time and recurring costs.<\/li>\n<li style=\"font-weight: 400;\">Consider the situation you addressed in the previous question. Create numeric cost estimates for each of the costs you listed. Calculate the net present value and return on investment. Include a break-even analysis. Assume a 10\u00a0percent discount rate and a five-year time horizon.<\/li>\n<\/ul>\n<h3><strong>Scenario Two:<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">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?<\/span><\/p>\n<h3><strong>Scenario Three:<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Assume monetary benefits of an information system of $40,000 the first year and increasing benefits of $10,000 a year for the next five years (year 1 = $50,000, year 2 = $60,000, year 3 = $70,000, year 4 = $80,000, year 5 = $90,000). One-time development costs were $80,000 and recurring costs were $45,000 over the duration of the system\u2019s life. The discount rate for the company was 11 percent. Using a six-year time horizon, calculate the net present value of these costs and benefits. Also calculate the overall return on investment and then present a break-even analysis. At what point does breakeven occur?<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Scenario One: Assume you are put in charge of launching a new website for a local nonprofit organization. What costs would you need to account for? Make a list of expected costs and benefits for the project. You don\u2019t need to list values, just sources of expense. Consider both one-time and recurring costs. Consider the [&hellip;]<\/p>\n","protected":false},"author":4914,"featured_media":0,"parent":3222,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"footnotes":""},"class_list":{"0":"post-3234","1":"page","2":"type-page","3":"status-publish","5":"entry"},"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P9BfYF-Qa","jetpack_likes_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/community.mis.temple.edu\/mis5203sec001sec701sp2018\/wp-json\/wp\/v2\/pages\/3234","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/community.mis.temple.edu\/mis5203sec001sec701sp2018\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/community.mis.temple.edu\/mis5203sec001sec701sp2018\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/community.mis.temple.edu\/mis5203sec001sec701sp2018\/wp-json\/wp\/v2\/users\/4914"}],"replies":[{"embeddable":true,"href":"https:\/\/community.mis.temple.edu\/mis5203sec001sec701sp2018\/wp-json\/wp\/v2\/comments?post=3234"}],"version-history":[{"count":1,"href":"https:\/\/community.mis.temple.edu\/mis5203sec001sec701sp2018\/wp-json\/wp\/v2\/pages\/3234\/revisions"}],"predecessor-version":[{"id":3235,"href":"https:\/\/community.mis.temple.edu\/mis5203sec001sec701sp2018\/wp-json\/wp\/v2\/pages\/3234\/revisions\/3235"}],"up":[{"embeddable":true,"href":"https:\/\/community.mis.temple.edu\/mis5203sec001sec701sp2018\/wp-json\/wp\/v2\/pages\/3222"}],"wp:attachment":[{"href":"https:\/\/community.mis.temple.edu\/mis5203sec001sec701sp2018\/wp-json\/wp\/v2\/media?parent=3234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}