Exam 5: Initiating and Planning Systems Development Projects

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Intangible benefits are benefits associated with project start-up,development,or system start-up.

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Capital costs,management and staff time,and consulting costs are examples of:

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Site preparation is an example of a one-time cost.

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If the NPV of all costs is $100,000 and the NPV of all benefits is $170,000,then the ROI would be 35%.

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Application software maintenance,new software and hardware leases,and incremental communications are examples of:

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The Systems Service Request reflects the best estimate of the project's scope,benefits,costs,risks,and resource requirements,given the current understanding of the project.

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The objective of the project planning process is the development of a Baseline Project Plan and a Statement of Work.

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Assume a proposed system has a useful life of 5 years,one-time costs of $1,000,000,recurring costs of $250,000 per year,and tangible benefits of $750,000 per year.If the cost of capital is 10%,what is the overall NPV? Overall ROI? Break-even point?

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________ is the process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities.

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Which of the following would be classified as an intangible cost?

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Which of the following is NOT a role at a walkthrough meeting?

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A walkthrough is a peer group review of any product created during the systems development process.

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The culmination of the feasibility analyses form the business case that justifies the expenditure of resources on the project.

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Briefly identify and define the six major categories of feasibility.

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Assessing project feasibility is a required activity for all information systems projects.

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Which of the following is an element of project planning?

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Assume a proposed system has a useful life of 5 years,one-time costs of $50,000,recurring costs of $25,000 per year,and tangible benefits of $45,000 per year.If the cost of capital is 10%,what is the overall NPV? Overall ROI? Break-even point?

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Proper and insightful project planning,including determining project scope as well as identifying project activities,can easily reduce time in later project phases.

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To identify the financial benefits and costs associated with the development project is the purpose of:

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Assume a proposed system has a useful life of 5 years,one-time costs of $50,000,recurring costs of $25,000 per year,and tangible benefits of $35,000 per year.If the cost of capital is 10%,what is the overall NPV? Overall ROI? Break-even point?

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