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Question 1: What are some sources of risk in a systems analysis and design project, and how does a projectmanager cope with risk during the stages of project management?
Question 2: Suppose that you have been contracted by ajewelry store to manage a project to create anew inventory tracking system. Describe your initial approach to the project. Whatshould your first activity be? What informationwould you need? To whom might you need tospeak?
Question 3: The economic analysis carried out during project identification and selection is rather superficial. Why is this? Consequently, what factorsdo you think tend to be most important for a potential project to survive this first phase of thelife cycle?
Question 4: Assuming monetary benefits of an informationsystem at $85,000 per year, one-time costs of$75,000, recurring costs of $35,000 per year, adiscount rate of 12 percent, and a five-yeartime horizon, calculate the net present value ofthese costs and benefits of an information system. Also calculate the overall return on investment of the project and then present abreak-even analysis. At what point does breakeven occur?
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