Reference no: EM131703941

Book : INFORMATION TECHNOLOGY PROJECT MANAGEMENT By Kathy Schwalbe

Please read the simple scenario carefully for the project, and answer the following questions:

Video Store Project

Case Study Description

A video store sells and rents videos to people. A person must be a store member to rent from that store. On other word, a person who has a membership card may rent from the store while anyone can buy a video.

Members can reserve videos for rent if all copies of it are currently rented. When a video is returned, the member will be called and the video held for up to 3 days, after which the reservation will be cancelled if unclaimed.

Rental fees ($2 for 2 days) are paid at the time of rental. Late returns are fined (at $1/day), and fines must be paid before another video can be rented.

A limited stock of videos is kept for sale, but a member can order a video for purchase.

You are to build a system to support the operations of this business.

Three different parties will use this computer system: the store clerk, the customer, and the store manager.

• The clerk will add new members and rent out and return videos on behalf of members, including collecting payment of fees. The clerk may warn members several times for late returns.

• The customer can search for titles (by name) and can place reservations for titles. Members can subscribe themselves for new title notifications.

• The manager can add new titles and video copies, and print out various reports and statistics.

Question Two

What are the risks that could be associated with implementing this project? List at least 4.

Question Three

Perform an NPV financial analysis for the mentioned project using the manual method. Assume that the projected costs and projected benefits for this project are spread over three years as follows:

- The estimated costs are $85,000 in Year 0 and $30,000 each year in Years 1, and 2.

- The estimated benefits are $0 in Year 0 and $90,000 each year in Years 1, and 2. Use 10 percent discount rate, and round the discount factors to two decimal places.

You must calculate the NPV manually and show your work using a table.

Question Four

List the different methods that could be used for collecting requirements for the above case study. List at least 4 different methods.