Question: Feasibility Study for a New Software Project Your CEO has asked you as a systems analyst to conduct a feasibility study for a new software
Feasibility Study for a New Software Project Your CEO has asked you as a systems analyst to conduct a feasibility study for a new software project that will help reduce costs, reduce errors, improve overall flexibility, provide an ease of interacting with business partners, increase the speed of transaction activity, and improve overall management planning control. You have received the following data regarding the tangible benefits and associated costs for this proposed project: Cost Benefit Analysis Data Tangible Benefits: Cost reduction or avoidance $12,500 Error reduction $3,500 Increased Flexibility $5,500 Increased speed of activity $7,500 Improvement management/planning control $15,000 Ease of interfacing with business partners $16,000 Total Tangible Benefits $60,000 One Time Cost: Development Costs $2,000 New Hardware $1,000 Software License or Purchase cost $19,500 User Training $3,500 Site Preparation $4,000 Total One Time Cost $30,000 Recurring Cost: Software Maintenance $2,500 Incremental Data Storage $2,500 Communications $9,000 Supplies $7,000 Other $4,000 Total Recurring Cost $25,000 Step 1: You are to conduct an economic benefit review by performing a cost benefit analysis by calculating the Net Present Value (NPV), Return on Investment (ROI), and Break-Even Point (BEP). The company wants to consider the time value of money when performing these calculations. The discount rate utilized for investments is 12 percent. You will utilize the Cost Benefit Analysis Template in MS Excel to complete these calculations. Please save your work on this Excel file. Step 2: Additionally, you will provide an analysis in a MS Word document that indicates whether or not it makes economical sense to accept this new software project. Explain your rationale for your conclusion and recommendation based on the cost benefit analysis conducted. This paragraph should be at least 75 words in length. Step 3: In another paragraph, please explain what are some other feasibility factors to consider before accepting this project as it relates to schedule, operational, and technical feasibility. This should be in the same MS Word document as step 2 and should be at least 125 words in length. Step 4. Please submit both the MS Word Document and MS Excel file in order to get credit for this case assignment.
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