Chp 5 Flashcards
(23 cards)
The concept that money available today is worth more than the same amount tomorrow
Time Value of Money
The process of evaluating how key Stakeholders within the organization view the proposed system
Political Feasibility
What is a Project Scope Statement?
PSS- a doc prepared for the customer that describes what the project will deliver and outlines generally at a high level all work required to complete the project
What is a Business Case?
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
A process of identifying the financial benefits and costs associated with a development project is?
Economic Feasibility
What is an Operational Feasibility?
the process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities
A cost resulting from the ongoing evolution and use of a system is?
Recurring Cost
The rate of return used to compute the present value of future cash flows
Discount Rate
What is an Intangible Benefit?
a benefit derived from the creation of an information system that cannot be easily measured in dollars or with certainty
What is 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 deadlines and constraints for affecting change
A cost associated with an information system that can be easily measured in dollars and certainty
Tangible Cost
A peer group review of any product created during the systems development process is?
Walkthrough
A process of assessing the development organization’s ability to construct a proposed system is?
Technical Feasibility
A cost associated with project start-up and development or system start-up is?
One-Time Cost
The current value of a future cash flow is?
Present Value
What is a Tangible Benefit?
A benefit derived from the creation of an information system that can be measured in dollars and with certainty
The process of assessing potential legal and contractual ramifications due to the construction of a system is?
Legal and contractual Feasibility
What is Intangible cost?
A cost associated with an information systems that cannot be easily measured in terms of dollars or with certainty
What is the Baseline Project Plan?
(BPP): plan with the major outcome and deliverable from the project initiation and planning phase and contains the best estimate of the project scope, benefits, costs, risks and resource requirements
What is a type of cost-benefit analysis to identify at what point (if ever) benefits equal costs
Break-even analysis
List the 6 steps in the project initiation and planning process
Establishing and developing
- An Initiation Team
- A Relationship with the Customer
- The Project Initiation Plan
- Management Procedures
- The Project Management Environment and Workbook
- Project Chater
What is contained in a BPP?
contains all information collected and analyzed during project initiation and planning;
Describe the 3 commonly used methods for performing economic cost-benefit analysis.
- Net Present Value: uses a discount rate determined from the company’s cost of capital to establish the present value of a project.
- Return on Investment (ROI): ratio of the net cash receipts of the project divided by the cash outlays of the project
- Break-Even Analysis (BEA): finds the amount of time required for the cumulative cash flow from a project to equal its initial and ongoing investment
