chapter 6

chapter 6

Question 2:

Break even analysis: finds the amount of time needed for the cumulative cash flow from a project to be equal to its initial and ongoing investment.

Present value: The current value of a future cash flow.

Net present value: uses a discount rate determined from the company's capital to get the present value of a project, cash receipts and outlays.

Return on Investment: is the ratio of the net cash receipts divided by the cash outlays of the project.

Economic feasibility: A process of identifying the costs and financial benefits associated with a development project.

Legal and contractual feasibility: The process of assessing potential legal and contractual ramifications due to the construction of a system.

Operational feasibility: The process of assessing the degree to which a proposed system solves business problem or takes advantage of business opportunities.

Political feasibility: The process of evaluating how key stakeholders within the organization view the proposed system.

Schedule Feasibility: The process of assessing the degree to which the potential time frame and completion dates for all major activities within a project meet organizational deadline and constrains for affecting change.

Intangible Benefit: A benefit determined from the creation of an information system that cannot be easily & exactly measured in dollars .

Tangible benefit: A benefit determined from the creation of an information system that can be easily & exactly measured in dollars .

Intangible cost: A cost associated with an IS that can not be easily or certainly measured in dollars .

Tangible cost: A cost associated with an IS that can be certainly & easily measured in dollars .

Question 3:

Net present value:
Net Present Value uses a discount rate determined from the company's capital to establish the present value of a project, cash receipts and outlays.

Return on Investment:
is the ratio of the net cash receipts divided by the cash outlays of the project.

Break-even analysis:
finds the amount of time needed for the cumulative cash flow from a project to be equal to its initial and ongoing investment.

Question 6:

1-Political.
2-Schedule.
3-Operational.
4-Technical.
5-Legal and contractual.
6-Economic.

Question 8:

1- Large projects are riskier than smaller projects.

2- A system in which the Requirements are messy ill-structured ill defined or subject to the judgment of an individual
will be riskier than one in which requirements are easily obtained and highly structured

3- The development of a system employing commonly used or standard technology will be less risky than one employing novel or non-standard technology.

Back

	*Break even analysis:* finds the amount of time needed for the cumulative cash flow from a project to be equal to its initial and ongoing investment.
	Present value: The current value of a future cash flow.
	*Net present value*: uses a discount rate determined from the company's capital to get the present value of a project, cash receipts and outlays.
	Return on Investment: is the ratio of the net cash receipts divided by the cash outlays of the project.

	*Economic feasibility:* A process of identifying the costs and financial benefits associated with a development project.
	*Legal and contractual feasibility:* The process of assessing potential legal and contractual ramifications due to the construction of a system.
	*Operational feasibility:* The process of assessing the degree to which a proposed system solves business problem or takes advantage of business opportunities.

	*Political feasibility:* The process of evaluating how key stakeholders within the organization view the proposed system.
	*Schedule Feasibility:* The process of assessing the degree to which the potential time frame and completion dates for all major activities within a project meet organizational deadline and constrains for affecting change.

	*Intangible cost:* A cost associated with an IS that can not be easily or certainly measured in dollars .
	*Tangible cost:* A cost associated with an IS that can be certainly & easily measured in dollars .

	*Net present value:* Net Present Value uses a discount rate determined from the company's capital to establish the present value of a project, cash receipts and outlays.
	Return on Investment: is the ratio of the net cash receipts divided by the cash outlays of the project.