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You work in the IT department of an online retail company that sells computers. One of the Sales Directors notices that the website is
You work in the IT department of an online retail company that sells computers. One of the Sales Directors notices that the website is slow and he has received many complaints from his customers. He has issued a System Request to improve the current IT system and is willing to be the project sponsor. Your manager look at the System Request and assign you to create: 1. A 6-year Business Case (Benefit-Cost Analysis) 2. Estimate the duration of the project using the PERT and Critical Path Method (CPM). You study the request and discuss with many organizations that would be involved to collect information. From high level assessment, you figure that the project would need 8 activities (A-H). From historical data of similar activities, you find the Pessimistic Estimate, Most Likely and Optimistic Estimate for each of them. You also analyze the potential benefits and costs and you record your estimate. Your manager told you that he will only support any project if the ROI is bigger than 20% and break-even is maximum 5 years. To calculate the PV, the discounted rate is 5%. All numbers are at the end of period.
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