Year O Year 1 Year 2 Year 3 Year 4 Year 5 $50,000 $50,000 $50,000 $50,000 $50,000 Net economic $0 benefit Onetime costs $47,500 Recurring costs $0 $32,000 $32,000 $32,000 $32,000 $32,000
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Pine Valley Furniture
Pine Valley Furniture recently implemented
a new internship program and has begun recruiting interns from nearby university campuses. As part of this program, interns have
the opportunity to work alongside a systems
analyst. This shadowing opportunity provides invaluable insights into the systems
analysis and design process. Recently you
were selected for a six-month internship at
Pine Valley Furniture, and Jim Woo has been
assigned as your supervisor.
At an initial meeting with Jim Woo, he explains
that Pine Valley Furniture is currently involved
with two important systems development
projects, the customer tracking system and WebStore. The purpose of the customer tracking system is to enable the PVF marketing group
to track customer purchase activity and sales
trends better. The WebStore project will help
move the company into the twenty-first century
by facilitating online furniture purchases, with
an initial focus on corporate furniture buying.
During your meeting with Mr. Woo, he reviews
the documentation assembled for both systems.
Mr. Woo hands you a copy of the customer
tracking system’s economic feasibility analysis.
He mentions that he would like to modify the
spreadsheet to reflect the information provided
in the following table. Because you are familiar
with a spreadsheet product, you volunteer to
make the modifications for hima. How were Pine Valley Furniture’s projects initiated? What is the focus for each
of the new systems?
b. Modify the customer tracking system’s
economic feasibility analysis to reflect the
modifications mentioned in this case problem. Use a discount rate of 10 percent. After
the changes are made, what are the new
overall NPV, ROI, and break-even point?
c. Modify the worksheet created in part b
using discount rates of 12 and 14 percent.
What impact do these values have on the
overall NPV, ROI, and break-even point?
d. Jim Woo would like to investigate how
other online stores are targeting the business furniture market. Identify and evaluate two online stores that sell business
furniture. Briefly summarize your findings.
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