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Chapter 14 Running Case Assignment: Improving Decision Making: Using
Spreadsheet Software to Analyze the Return on a New System Investment
Software skills: Spreadsheet formulas and functions
Business skills: Capital budgeting
This project provides you with an opportunity to use spreadsheet software to use the
capital budgeting models discussed in this chapter to analyze the return on a new
information system investment for a real-world company.
Dirt Bikes’s management would like to analyze the return on its investment in its
employee training and skills tracking system described in Chapter 13. The system runs on
the human resources specialists’ PCs using PC database software. Because the entire
corporate administrative staff recently received new desktop PC systems with database
and other productivity software, there are no additional hardware and software purchase
costs. The main costs include the initial cost of designing and implementing the database
• Prepare a report for management analyzing the return on the investment for this
system over a five-year period using the following capital budgeting models: net
present value, return on investment (ROI), internal rate of return (IRR), and
