Return on Investment - Assignment Example

Lecturer “Return on Investment” Question Four candi solutions have been proposed for a project. The corporation requiresa lifetime ROI of at least 80%. The estimated time-adjusted lifetime costs and benefits are as follows for each solution: Estimated Estimated Lifetime Lifetime Benefits Costs Candidate solution #1 $640,000 $372,000 Candidate solution #2 $905,000 $675,000 Candidate solution #3 $245,000 $115,000 Candidate solution #4 $745,000 $698,000 a.

Which candidate solution offers the highest return on investment? Candidate solution #3 offers the highest return on investment with 113.04%. b. Do any of the solutions meet the required minimum corporate lifetime ROI of 80%? Yes, one of the four candidate solutions meets the required minimum corporate lifetime ROI of 80%. The candidate solution #3 does. It even surpasses it. Question 2 What do each of the six categories of feasibility tests measure? From your experience, or reading, provide an example of a fielded system or other project that should have failed at least one of the feasibility tests. 1. Operational feasibility is the measure of how well a developed system will work in a given environment under given conditions. 2. Technical feasibility measure measures the practicality of a developed information system and availability of technical resources. 3. Economic feasibility measure is a measure meant to rate the cost effectiveness of a system that has been or is being designed. 4. Legal feasibility determines whether the developed system is in conflict with the legal provisions. 5. Schedule feasibility.

A system should not take too long before completion. This measures whether a system project can be finished within time and serve the full purpose. 6. Cultural feasibility measures whether the project will be compatible with the local and general culture of its target environment. Earlier, supermarkets introduced a talking system at the tills. The customers expressed dissatisfaction with the system due to the ‘announcement’ of their personal effects and it also distracted the cashiers. This is an example of a system that failed the operational and cultural feasibilities.