Pine Valley

Topics: Discount rate, Online shopping, Tracking Pages: 2 (373 words) Published: October 22, 2012
Case Problems

Pine Valley Furniture recently implemented a new internship program and has begun recruiting interns from nearby university campuses. As part of this program, interns have the opportunity to work alongside a systems analyst. This shadowing opportunity provides invaluable insights into the systems analysis and design process. Recently you were selected for a six-month internship at Pine Valley Furniture, and Jim Woo has been assigned as your supervisor. At an initial meeting with Jim Woo, he explains that Pine Valley Furniture is currently involved with two important systems development projects, the Customer Tracking System and Web Store. The purpose of the Customer Tracking System is to enable the PVF marketing group to track customer purchase activity and sales trends better. The WebStore project will help move the company into the twenty-first century by facilitating online furniture purchases, with an initial focus on corporate furniture buying. During your meeting with Mr. Woo, he reviews the documentation assembled for both systems. Mr. Woo hands you a copy of the Customer Tracking System’s economic feasibility analysis. He mentions that he would like to modify the spreadsheet to reflect the information provided in the following table. Because you are familiar with a spreadsheet product, you volunteer to make the modifications for him. |Year 0 |Year 1 |Year 2 |Year 3 |Year 4 |Year 5 | |Net economic benefit |$ 0 |$50,000 |$50,000 |$50,000 |$50,000 |$50,000 | |One-time costs |$47,500 |  |  |  |  |  | |Recurring costs |$ 0 |$32,000 |$32,000 |$32,000 |$32,000 |$32,000 |

• a. How were Pine Valley Furniture’s projects initiated? What is the focus for each of the new...
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