SENG 310 Software Engineering

Spring Semester 2011/2012

A use case is described below.

You must perform cost-benefit (economic feasibility) analysis for this project. More precisely, you must develop a spreadsheet for each of the three cases specified above over a period of 4 years. For each of these cases, you must calculate: - The net profit in absolute funds over the 4-year period - The net profit adjusted for present value (cumulative NPV) - ROI - The Break-even point Graph the calculated cumulative present value costs, benefits, and net value. Then, using the probabilities of the 3 cases, calculate the expected values of the above 4 measures. For example, if M1, M2, and M3 are the values of a given measure for the possible 3 cases respectively, then the expected value will be M = M1*p1 + M2*p2 + M3*p3 where p1, p2, and p3 are the probabilities of the cases. In your calculations, use the following additional information: - The new SW is purchased at the beginning of year 1. The SW is put into operation immediately. - The cost of the new SW (including setup) is $400,000.


Then the salary is increased by 5% each year. However. this revenue is increased by 4% each consecutive year. 2 . The average revenue per call is $150. The average inflation to be used in the calculations for the present value is 6%. Her starting salary is $60. as described earlier.- One dispatcher will be hired to operate the new system.000.

Sign up to vote on this title
UsefulNot useful