BookID Title Author Genre Year ISBN
1 The Great Gatsby F. Scott Fiction 1925 978-
Fitzgerald 0743273565
2 To Kill a Harper Lee Fiction 1960 978-
Mockingbird 0061120084
3 Introduction to Rick F. van der Non- 2012 978-
SQL Lans Fiction 0321927745
4 Algorithms Robert Non- 2011 978-
Sedgewick Fiction 0321573513
Case study
This unnormalized table contains information about books in a library. Each row represents a
book, and each column provides different details such as the book ID, title, author, genre,
publication year, and ISBN.
First Normal Form (1NF): In 1NF, each column must contain atomic (indivisible)
values. We can achieve this by eliminating repeating groups and ensuring that
each cell has a single value.
Second Normal Form (2NF): In 2NF, the table should be in 1NF, and all non-
prime attributes should be fully functionally dependent on the primary key.
In 2NF, we address partial dependencies by breaking the table into two
separate tables. The new tables are "Books" and "ISBNs."
Table: Books
BookID Title Author Genre Year
1 The Great Gatsby F. Scott Fitzgerald Fiction 1925
2 To Kill a Mockingbird Harper Lee Fiction 1960
3 Introduction to SQL Rick F. van der Lans Non-Fiction 2012
4 Algorithms Robert Sedgewick Non-Fiction 2011
Table: ISBNs
BookID ISBN
1 978-0743273565
2 978-0061120084
3 978-0321927745
4 978-0321573513
Third Normal Form (3NF): In 3NF, the table should be in 2NF, and there should
be no transitive dependencies.
Table: Books
BookID Title Author Genre Year
1 The Great Gatsby F. Scott Fitzgerald Fiction 1925
2 To Kill a Mockingbird Harper Lee Fiction 1960
3 Introduction to SQL Rick F. van der Lans Non-Fiction 2012
4 Algorithms Robert Sedgewick Non-Fiction 2011
Table: BookDetails
BookID Year
1 1925
2 1960
3 2012
4 2011
Table: ISBNs
BookID ISBN
1 978-0743273565
2 978-0061120084
3 978-0321927745
4 978-0321573513
Payback and ROI
The company plans to implement a new Customer Relationship Management (CRM)
software. The initial investment for the software license, training, and implementation is
$100,000. The company estimates that the new CRM system will result in annual cost
savings and increased revenue, totalling $30,000 per year.
Payback Period:
Payback Period = Initial Investment / Annual Cash Inflow
In this case:
Payback Period = $100,000 / $30,000 per year ≈ 3.33 years
The payback period is approximately 3.33 years, meaning the company will recoup its initial
investment in the new CRM system within that time.
Return on Investment (ROI):
ROI = (Net Profit / Initial Investment) * 100
In this case:
Net Profit = Annual Cash Inflow - Initial Investment
Net Profit = $30,000 - $100,000 = -$70,000 (negative because it's an initial
investment)
ROI = (-$70,000 / $100,000) * 100 ≈ -70%
The negative ROI indicates that, at the end of the analysis period, the company has not
generated a positive return on its investment. This is a key consideration, and a negative ROI
may raise concerns about the financial viability of the project.
