Based on Part C of the Systems Analyst’s Toolkit, what financial analysis tools should you use to evaluate the software acquisition options for Atrium? Explain how you would apply each of the tools.

What will be an ideal response?

Cost-benefit analysis is the process of comparing the anticipated costs of an information system to the anticipated benefits. Cost-benefit analysis is performed throughout the SDLC to determine the economic feasibility of an information system project and to compare alternative solutions. Many cost-benefit analysis techniques exist.
Payback analysis is the process of determining how long it takes an information system to pay for itself.
Return on investment (ROI) is a percentage rate that measures profitability by comparing the total net benefits (the return) received from a project to the total costs (the investment) of the project.Return on investment analysis considers costs and benefits over a longer time span than payback analysis.
Present Value Analysis considers how a dollar you have today is worth more than a dollar you do not receive until one year from today.
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