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INFS1602/2602 Final Exam Practice

Short Answer Practice Questions

Question 1. Solution Development (5 marks)

Question 1a (2 marks)

List and briefly describe the four phases of the Software Development Lifecycle.

Question 1b (3 marks)

Why are wireframes important? Describe how wireframes are used by three different groups of stakeholders.

Question 3: NPV Analysis (5 marks)

A company is considering investing in a new project that requires an initial investment of $100,000. The project is expected to generate the following cash flows over the next four years: $30,000 in year 1, $40,000 in year 2, $50,000 in year 3, and $60,000 in year 4. The company's required rate of return is 10%, and the inflation rate is 2%.

Calculate the net present value of the project, adjusted for inflation, and determine whether the company should invest in the project.

Show your calculations in an NPV table and explain your reasoning.