Question
a) Assume a proposed system has a useful life of 3 years. Given its Net Present Value (NPV) of all benefits is RM 565,260. Calculate:
a) Assume a proposed system has a useful life of 3 years. Given its Net Present Value (NPV) of all benefits is RM 565,260. Calculate: (Note: Please round up your answer into zero decimal place and show your workings) i. NPV of all costs, if its recurring cost is RM 70,000 per year, one-time cost is RM 350,000 and the discount rate is 11%. [4m] ii. Overall Net Present Value (NPV). [0.5m] iii. Overall Return of Investment (ROI). [0.5m] (5m) b) There are four (4) assessment factors that associated with technical risk: Project size, Project structure, Development group and User group. Choose TWO (2) factors which in your opinion are important when conducting a technical risk assessment of an IS project. Describe and justify your reasons. (5m
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