{"id":3528,"date":"2018-02-23T19:32:43","date_gmt":"2018-02-24T00:32:43","guid":{"rendered":"http:\/\/community.mis.temple.edu\/mis5203sec951sp2018\/?page_id=3528"},"modified":"2018-02-25T19:02:26","modified_gmt":"2018-02-26T00:02:26","slug":"pa-3-1-practical-assignment-3","status":"publish","type":"page","link":"https:\/\/community.mis.temple.edu\/mis5203sec951sp2018\/pa-3-1-practical-assignment-3\/","title":{"rendered":"PA-3.1: Practical Assignment 3"},"content":{"rendered":"

Follow the instructions in the project feasibility\u00a0demonstration<\/a> (using this spread sheet:\u00a0CalculateProjectNPV<\/a>) to complete all three scenarios:<\/em><\/p>\n

Scenario One:<\/span><\/h3>\n
    \n
  • 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.<\/span><\/li>\n
  • 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.<\/span><\/li>\n<\/ul>\n

    Scenario Two:<\/span><\/h3>\n

    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 break-even occur?<\/span><\/p>\n

    Scenario Three:<\/span><\/h3>\n

    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 break-even occur?<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    Follow the instructions in the project feasibility\u00a0demonstration (using this spread sheet:\u00a0CalculateProjectNPV) to complete all three scenarios: 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 […]<\/p>\n","protected":false},"author":17217,"featured_media":0,"parent":0,"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":"full-width-content","footnotes":""},"class_list":{"0":"post-3528","1":"page","2":"type-page","3":"status-publish","5":"entry"},"_links":{"self":[{"href":"https:\/\/community.mis.temple.edu\/mis5203sec951sp2018\/wp-json\/wp\/v2\/pages\/3528","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/community.mis.temple.edu\/mis5203sec951sp2018\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/community.mis.temple.edu\/mis5203sec951sp2018\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/community.mis.temple.edu\/mis5203sec951sp2018\/wp-json\/wp\/v2\/users\/17217"}],"replies":[{"embeddable":true,"href":"https:\/\/community.mis.temple.edu\/mis5203sec951sp2018\/wp-json\/wp\/v2\/comments?post=3528"}],"version-history":[{"count":3,"href":"https:\/\/community.mis.temple.edu\/mis5203sec951sp2018\/wp-json\/wp\/v2\/pages\/3528\/revisions"}],"predecessor-version":[{"id":3573,"href":"https:\/\/community.mis.temple.edu\/mis5203sec951sp2018\/wp-json\/wp\/v2\/pages\/3528\/revisions\/3573"}],"wp:attachment":[{"href":"https:\/\/community.mis.temple.edu\/mis5203sec951sp2018\/wp-json\/wp\/v2\/media?parent=3528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}