Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/217864 
Authors: 
Year of Publication: 
1984
Citation: 
[Journal:] South African Journal of Business Management [ISSN:] 2078-5976 [Volume:] 15 [Issue:] 3 [Publisher:] African Online Scientific Information Systems (AOSIS) [Place:] Cape Town [Year:] 1984 [Pages:] 144-149
Publisher: 
African Online Scientific Information Systems (AOSIS), Cape Town
Abstract: 
A manager facing the decision whether to proceed with a proposed computer system development project needs to determine whether its benefits are worth more than its costs. This can be done by applying a simple mathematical formula to calculate the project's 'net worth', as the sum of the annual benefits obtainable during the system's life span, less its development costs. The formula recognizes that a system's annual benefit, comprising enhanced informational value plus reduction In data processing cost, will change as a result of obsolescence, cost of capital, organizational growth and learning.
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Document Type: 
Article

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