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584 Part Four Building and Managing Systems

500,000 devices, but still weren’t sure which features they wanted included in the units. Census officials
did not specify the testing process to measure the performance of the handheld devices. As the project
progressed, 400 change requests to project requirements were added. Two years and hundreds of millions
of taxpayer dollars later, the handhelds were far too slow and unreliable to be used for the 2010 U.S.
census. What could Census Bureau management and the Harris Corporation have done to prevent this
outcome?
2. Caterpillar is the world’s leading maker of earth-moving machinery and supplier of agricultural equipment.
Caterpillar wants to end its support for its Dealer Business System (DBS), which it licenses to its dealers to
help them run their businesses. The software in this system is becoming outdated, and senior management
wants to transfer support for the hosted version of the software to Accenture Consultants so it can concen-
trate on its core business. Caterpillar never required its dealers to use DBS, but the system had become a de
facto standard for doing business with the company. The majority of the 50 Cat dealers in North America use
some version of DBS, as do about half of the 200 or so Cat dealers in the rest of the world. Before Caterpillar
turns the product over to Accenture, what factors and issues should it consider? What questions should it
ask? What questions should its dealers ask?

Improving Decision Making: Using Spreadsheet Software for Capital
Budgeting for a New CAD System

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 an investment for a new computer-aided design
(CAD) system.
Your company would like to invest in a new computer-aided design (CAD) system that requires purchas-
ing hardware, software, and networking technology, as well as expenditures for installation, training, and
support. MyMISLab contains tables showing each cost component for the new system as well as annual
maintenance costs over a five-year period, along with a Learning Track on capital budgeting models. You
believe the new system will reduce the amount of labor required to generate designs and design specifica-
tions, thereby increasing your firm’s annual cash flow.
• Using the data provided in these tables, create a worksheet that calculates the costs and benefits of the
investment over a five-year period and analyzes the investment using the four capital budgeting models
presented in this chapter’s Learning Track.
• Is this investment worthwhile? Why or why not?

Improving Decision Making: Using Web Tools for Buying and Financing a
Home

Software skills: Internet-based software
Business skills: Financial planning
This project will develop your skills using Web-based software for searching for a home and calculating
mortgage financing for that home.
You would like to purchase a home in Fort Collins, Colorado. Ideally, it should be a single-family house
with at least three bedrooms and one bathroom that costs between $150,000 and $225,000 and finance it
with a 30-year fixed rate mortgage. You can afford a down payment that is 20 percent of the value of the
house. Before you purchase a house, you would like to find out what homes are available in your price
range, find a mortgage, and determine the amount of your monthly payment. Use the Yahoo! Homes site to
help you with the following tasks:

• Locate homes in Fort Collins, Colorado, that meet your specifications.
• Find a mortgage for 80 percent of the list price of the home. Compare rates from at least three sites
(use search engines to find sites other than Yahoo).
• After selecting a mortgage, calculate your closing costs and the monthly payment.

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