Week 4 A 2 Case Study Example | Topics and Well Written Essays - 250 words

Week 4 A 2 - Case Study Example This will also help her to make decision on whether to develop a system which she will use for training or offer training manually. The most important aspect of system development is its implementation. This will require approval from management and users of the system. The system should meet needs of the users and also be cost effective. To ensure this is achieved, Susan should assess its efficiency using rate of return, payback period, or net present value methods. Payback period refer to duration which revenue gained from a project will cover the expenditure incurred for its implementation. It is a simple method to use before decision making. However, this method ignores time value of money. Rate of return method is also useful to calculate the total amount of revenue generated from a project. It is useful when comparing more than one project and is also easy to use. However, it ignores projects with low returns at the initial stages but yielding high returns in the future. It also fails to take into consideration time value of money. Finally, she may decide to use net present value method, whereby she will consider the future returns of a project and value them at present time. This method takes into consideration the entire project lifecycle. However, it difficult to calculate since it requires people with professional accounting