Consider the situation you addressed in Problem and Exercise 5-35. Create numeric cost estimates for each of the costs you listed. Calculate the net present value and return on investment. Include a break-even analysis. Assume a 10 percent discount rate and a five-year time horizon.

Problem and Exercise 5-35.

Consider your use of a PC at either home or work and list tangible benefits from an information system. Based on this list, does your use of a PC seem to be beneficial? Why or why not? Now do the same using Table 5-3, the intangible benefits from an information system. Does this analysis support or contradict your previous analysis? Based on both analyses, does your use of a PC seem to be beneficial?

Table 5-3

Competitive necessity More timely information Improved organizational planning Increased organizational flexibility Promotion of organizational learning and understanding Availability of new, better, or more More confidence in decision quality Improved processing efficiency Improved asset utilization Improved resource control Increased accuracy in clerical operations Improved work process that can improve employee morale or customer satisfaction Positive impacts on society Improved social responsibility Better usage of resources ("greener") information Ability to investigate more alternatives Faster decision making