1) A Competitive strategy is a method by which an organization attempts to achieve its mission and objectives.

The three competitive strategies used by businesses are discussed in class. Name them and explain the differences between those.

2) Assuming monetary benefits of an information system at $85,000 per year, one-time costs of $75.000 recurring costs of $35,000 per year, a discount rate of 12 percent, and a five-year time horizon, calculate the net present value of these costs and benefits of an information system. Also calculate the overall return on investment of the project and then present a break-even analysis. At what point does breakdown even occur?