A14 Financial Analysis - Instructions

Assignment 14

Financial Analysis
STEP 1: Read the instructions below carefully to complete the assignment.
STEP 2: Upon reading the instructions, use MS Word and "Smarthinking Tutoring" services, to
complete the Assignment, then submit as an attachment in the dropbox below.
Hi, students

Follow Jesse’s e-mail instructions about calculating payback, ROI, and NPV
for the TIMS system.  

 Use Microsoft word to complete this assignment.

 Submit the Microsoft Office Word document in the drop box as an attachment

All Jesse’s e-mail instructions about calculating payback, ROI, and NPV for
the TIMS system are below

SCR Inbox 7.1


Date: Tue Oct 23 2018 21:39:57 GMT-0400 (Eastern Daylight Time)

To: leonardo.silva006@scrassociates.com
From: Jesse_Baker@scrassociates.com
Subject: Development strategies
Leonardo Goncalves Da Silva:

I showed your DFDs and object models to the Executive Committee last week, and I thought you might like
to hear some good news. The committee members really are enthusiastic about the new system.
Apparently, the diagrams helped them visualize the new system and reinforced their understanding.

Now it’s time to think about systems development alternatives and the transition to the systems design
phase. I’ll get back to you tomorrow with some suggestions.

Jesse Baker
 SCR Inbox 7.2


Date: Tue Oct 23 2018 21:46:09 GMT-0400 (Eastern Daylight Time)

To: leonardo.silva006@scrassociates.com
From: Jesse_Baker@scrassociates.com
Subject: Financial analysis and development strategies
Leonardo Goncalves Da Silva:

Now that we have approval for the logical model, we need to take a look at development strategies for the
TIMS system. This will give you a chance to put your cost-benefit analysis skills to work

I want you to perform three tasks to analyze in-house development of TIMS:

a. Visit the SCR Data Library and review the questionnaire summary and cost-benefit summary;
b. Organize this data into a spreadsheet with columns for years 0, 1, 2, and 3, and rows for the items. Be sure
to group developmental costs, operational costs, and revenues separately
c. Use the spreadsheet data to calculate payback, ROI, and NPV for the TIMS project.
Here are some tips that might help: Go back and review the cost-benefit data, which contains TIMS cost
and benefit projections that were put together at the time of the JAD sessions. We want to see all costs and
benefits identified as developmental vs. operational, direct vs. indirect, and so on. See if you can think of
any intangible benefits, too.

Also review the questionnaire results, because we use this data to project student enrollment and training
center revenue.

Two more tasks for you: We need to find out whether we can implement TIMS as a commercial software
package. Get on the Internet and look for a vertical package designed to support a training operation. I’m
not sure if any exist, but we should check. Let me know what you find. We also need to investigate the
possibility of outsourcing the TIMS system. Try to locate one or more Internet-based outsourcing option,
and let me know what the advantages and disadvantages of outsourcing would be.

Jesse Baker
 SCR Inbox 7.3


Date: Tue Oct 23 2018 21:46:35 GMT-0400 (Eastern Daylight Time)

To: leonardo.silva006@scrassociates.com
From: Jesse_Baker@scrassociates.com
Subject: News about prototyping, system requirements document, and presentation
Leonardo Goncalves Da Silva:

Here is some news for the team: Remember our discussion about prototyping? Well, a decision has been
made. The consensus is that we should construct a TIMS prototype using Microsoft Access. After the
physical design is complete, we can migrate the system to the corporate server or keep it on a separate
training department server. We’ll talk about that issue later on.

Finally, we’ll need to prepare a system requirements document and deliver a full-scale presentation
toward the end of next week. It’ll be tight, but I think we can pull it off. I’ll get back to you in the morning
with some guidelines for the presentation. Let me know if you have any questions.

Jesse Baker
 SCR Inbox 7.4


Date: Tue Oct 23 2018 21:50:48 GMT-0400 (Eastern Daylight Time)

To: leonardo.silva006@scrassociates.com
From: Jesse_Baker@scrassociates.com
Subject: Logical model of TIMS
Leonardo Goncalves Da Silva:

You should have the system requirements document ready at least two days before the presentation,
which is scheduled for Friday in the main conference room at 10 a.m. The audience will include the
Executive Committee, a mixed group of users, and some of the IT staff.

When you prepare the system requirements document, remember to use separate sections for each
major topic and include any charts, graphs, or other helpful visual information. Be sure to spell check
and carefully proofread everything!

Your main objective, both in the document and the presentation, is to provide an overview of the TIMS
system, including costs and benefits, with an explanation of the various cost-and-benefit types and
categories. Be sure to include the following topics:

 An economic feasibility analysis, using payback analysis, ROI, and net present value (you should
assume a discount rate of 10 percent)
 An initial ERD
 A data and process model, including a context diagram and diagram 0
 You can include an object model, including use case diagrams for major business functions, but this is
optional
 A brief explanation of the various alternatives that should be investigated if development continues,
including in-house development and any other possible strategies
Your oral presentation should be clear, easy to follow, and interesting. Here are some tips:

 Use suitable visual aids. Also consider using presentation software, such as PowerPoint. Try to come
up with a clean, professional design without gimmicks or fancy techniques. Your audience at SCR
won’t be impressed by all that – just stick to solid, basic design.
 Distribute handouts before, during, or after the presentation, whatever you think will help. Bullet
outlines are fine, but don’t distribute handouts that will distract your audience.
 Keep your presentation to 30 minutes, including 5 minutes for questions.
I know there’s a lot to do, but I have confidence in you and the rest of the team. Let me know if you
have questions or need additional resources. Good luck

Jesse Baker
 Voice Mail Message 7.1

I sent you an e-mail with a task list for creating the system requirements document. Here’s a tip
that might help you handle the economic feasibility analysis:

First, go to the SCR Data Library and review the document with the questionnaire results. That
data is the basis of the revenue projections for the three-year period.

Then review the summary of Cost-Benefit Data. You’ll see a worksheet with four columns. The first
column shows first-year costs and benefits. What you have to do is to fill in the other columns. For
example, if something goes up 10% a year, go ahead and make that projection. If something is
volume-related, like supplies, use the assumptions to do the math. Good luck!

Voice Mail Message 7.2

Hi. I promised I’d give you some ideas for the oral presentation. Here are three tips about visual
aids, handouts, and timing.

o First, be sure to use effective visual aids. You probably should use presentation software, such as
PowerPoint. Try to come up with a clean, professional design without gimmicks or fancy
techniques. Your audience at SCR won’t be impressed by all that – just stick to solid, basic design.
o Second, distribute some handouts before, during, or after the presentation. Whatever you think
will help. Bulleted outlines are OK, but don’t pass out handouts that will distract your audience.
o Third, keep your presentation to 30 minutes, including 5 minutes for questions.
Let’s get together in a day or two, and you can fill me in on your game plan.