Cyber Security Question
Assignment Title: Evaluate Sensitivity Analysis Findings for IT Project Selection Books and Resources • • Blank, L., & Tarquin, A. (2018). Engineering economy (8th ed.). McGraw Hill. Read Chapter 1 and 2, pp. 28-39. Vernimmen, P., Quiry, P., Dallocchio, M., Le, F. Y., & Salvi, A. (2017). Corporate finance: Theory and practice (5th ed.). Wiley. Read Chapter 8 and 29, pp. 119-123 and 527-532. Instructions As the IT Manager at Googolplex, you are always searching for new technology that can reduce the cost of managing patient care while also increasing the quality of care. During staff meetings, medical experts have advised that monitoring members’ overall health is key to early intervention on changes to members’ health. It is through early intervention that significant savings to the company can be achieved. The CEO and Chief Medical Officer have identified that the Internet of Things (IoT) technology in the form of wearable devices could save and earn the company millions of dollars with the continuous monitoring of high-risk members. IoT technology is defined as devices and systems that are integrated through the Internet, thereby enabling monitoring and data trend analysis. IoT-enabled wearable heart rate monitors, for instance, can help the company identify risk factors sooner to allow for preventative interventions or treatments. You have been asked to evaluate financing scenarios that allow members to receive a free IoT wearable medical monitor. Based on the current conditions, it is expected that Googolplex will have new annual revenues of $25,000,000 if they invest in and distribute new wearables devices to members. All analysis thus far has taken place at 10% per year. However, the firm has received information from other corporations that have shown a 25% average return per year on the initial investment of $100,000,000 for comparable medical monitor investments when market conditions are normal. Yet, the same companies report a significant impact on the variability of returns per year based on changes to market risk due to supply-chain dependencies on foreign manufacturers. When the market risk is high, the average initial investment return was 0% per year; when market risk is low, the average initial investment return was 50%. Determine the number of years required to generate 10%, 25%, and 50% returns on a $100,000,000 initial investment for the new wearable devices under each of the market risk conditions: average market risk, low market risk, and high market risk. Assume market risk condition (average, low, or high) is constant for the specified evaluation period of 10-years. Knowing that there are many risks associated with deploying new technology, conduct a sensitivity analysis that shows the variability of potential returns on investment. Consider and describe potential market risks, interest rate changes, cost of future wearable device research, and product acquisition under varying economic and non-economic conditions. Your deliverable is to develop a presentation for the CEO and Chief Medical Officer that is based on sensitivity analysis to show the variable costs and risks associated with investing in and deploying the IoT wearable devices. Length: 5-8 PowerPoint slides, not including Excel calculations, title page, or references References: Include a minimum of 2 scholarly resources. The completed assignment should address all of the assignment requirements, exhibit evidence of concept knowledge, and demonstrate thoughtful consideration of the content presented in the course. The writing should integrate scholarly resources, reflect academic expectations and current APA standards. Notes: Assignment will be submitted via Turnitin.
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