Exam 5: Initiating and Planning Systems Development Projects

At walkthrough meetings,there is a need to have individuals play specific roles such as:

A ________ is the justification for an information system,presented in terms of the tangible and intangible economic benefits and costs and the technical and organizational feasibility of the proposed system.

If the NPV of all benefits is $150,000 and the NPV of all costs is $125,000,then the ROI is 15%.

Briefly define walkthrough and describe the role of each participant.

To gain an understanding of how key stakeholders within the organization view the proposed system is the purpose of:

A ________ is a cost associated with an information system that can be easily measured in dollars and with certainty.

Referencing a walkthrough,the coordinator reviews the work product in terms of future maintenance activities.

The Statement of Work is a document prepared for the customer during project initiation and planning that describes what the project will deliver and outlines generally at a high level all work required to complete the project.

Fixed costs are costs that are billed or incurred at a regular interval and usually at a fixed rate.

Assume a proposed system has a useful life of 5 years,one-time costs of $250,000,recurring costs of $80,000 per year,and tangible benefits of $175,000 per year.If the cost of capital is 12%,what is the overall NPV? Overall ROI? Break-even point?

Improvement of management planning and control is a tangible benefit.

Competitive necessity,more timely information,and improved organizational planning are intangible benefits.

The objective of project initiation and planning is to transform a vague system request document into a tangible project description.

Tangible benefits would include:

A cost resulting from the ongoing evolution and use of a system refers to a(n):

A benefit derived from the creation of an information system that can be measured in dollars and with certainty is a(n):

The objective of ROI analysis is to discover at what point cumulative benefits equal costs.

The analysis technique that uses a discount rate determined from the company's cost of capital to establish the present value of a project is commonly called:

A major outcome and deliverable from the project initiation and planning phase that contains the best estimate of a project's scope,benefits,costs,risks,and resource requirements defines the:

A cost associated with an information system that can be measured in dollars and with certainty is referred to as a(n):