Chp 5

Question 1

The concept that money available today is worth more than the same amount tomorrow

Answer 1

Time Value of Money

Question 2

The process of evaluating how key Stakeholders within the organization view the proposed system

Answer 2

Political Feasibility

Question 3

What is a Project Scope Statement?

Answer 3

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

Question 4

What is a Business Case?

Answer 4

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

Question 5

A process of identifying the financial benefits and costs associated with a development project is?

Answer 5

Economic Feasibility

Question 6

What is an Operational Feasibility?

Answer 6

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

Question 7

A cost resulting from the ongoing evolution and use of a system is?

Answer 7

Recurring Cost

Question 8

The rate of return used to compute the present value of future cash flows

Answer 8

Discount Rate

Question 9

What is an Intangible Benefit?

Answer 9

a benefit derived from the creation of an information system that cannot be easily measured in dollars or with certainty

Question 10

What is Schedule Feasibility?

Answer 10

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

Question 11

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

Answer 11

Tangible Cost

Question 12

A peer group review of any product created during the systems development process is?

Answer 12

Walkthrough

Question 13

A process of assessing the development organization’s ability to construct a proposed system is?

Answer 13

Technical Feasibility

Question 14

A cost associated with project start-up and development or system start-up is?

Answer 14

One-Time Cost

Question 15

The current value of a future cash flow is?

Answer 15

Present Value

Question 16

What is a Tangible Benefit?

Answer 16

A benefit derived from the creation of an information system that can be measured in dollars and with certainty

Question 17

The process of assessing potential legal and contractual ramifications due to the construction of a system is?

Answer 17

Legal and contractual Feasibility

Question 18

What is Intangible cost?

Answer 18

A cost associated with an information systems that cannot be easily measured in terms of dollars or with certainty

Question 19

What is the Baseline Project Plan?

Answer 19

(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

Question 20

What is a type of cost-benefit analysis to identify at what point (if ever) benefits equal costs

Answer 20

Break-even analysis

Question 21

List the 6 steps in the project initiation and planning process

Answer 21

Establishing and developing

1. An Initiation Team
2. A Relationship with the Customer
3. The Project Initiation Plan
4. Management Procedures
5. The Project Management Environment and Workbook
6. Project Chater

Question 22

What is contained in a BPP?

Answer 22

contains all information collected and analyzed during project initiation and planning;

Question 23

Describe the 3 commonly used methods for performing economic cost-benefit analysis.

Answer 23

1. Net Present Value: uses a discount rate determined from the company’s cost of capital to establish the present value of a project.
2. Return on Investment (ROI): ratio of the net cash receipts of the project divided by the cash outlays of the project
3. 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