the answer to the problems in the end of chapter 7Full description
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Chapter 7 Capstone Case – New Century Wellness Group Tasks 1. Provide Provide an overview overview of the proposed proposed system, system, including including costs costs and benefits, benefits, with an explanati explanation on of the various cost-benefit types and categories. Costs of the current system
Overtime ever day= hour !otal cost of Over time every day= "1#$ per hour %aily errors of employees=& e mployees=& Correction of error= '( minutes to correct one error. )o the total cost for error correction is= $*( every day +t means, after sie months we need to pay additional one salary. !he total cost after five years is= $11&((
)olution 1
/e can use the option of in-house system development !his will ta0e twelve wee0s, including the cost of the software and the cost of the analysis. /hen the employees will get enough training, then they need to $1(( salary and the cost of the software is $'#((. !hat2s why for this option after # years we need to pay total $1*&((
)olution '
Purchase the software
Cost of the software is= $1'((( 3aintenance services, configuration, annual service cost = $(( )alary of the system analyst for first year only=$#((( !otal first year cost=$*(( !otal cost after five years= $'((((
)o the current system cost=$11&(( Cost of solution 1=$1*&(( Cost of solution '=$'(((( '. Develop an economic feasibility analysis, using payback analysis, !", an# present value $assume a #iscount rate of %&'()