Determining the (TCO) or total cost of ownership for a strategic information system investment is a

critical part of the leaders’ role in using technology in a transforming way. The Return on Investment

Analysis depends upon reliable estimates of both the capital outlay and ongoing operational costs

associated with the initiative over a period of time. This Assignment focuses on outlining both the

capital and ongoing operational costs associated with a typical technology investment. You will

outline the costs and, as importantly, the assumptions that you used in deriving these financial

estimates.

To prepare:

Review the Pro Forma Explanation Material and HIT Program Pro Forma Template in the Learning

Resources.

The Assignment:

Write a 2­page APA style paper, addressing the following elements for the scenario that you chose in

Week 3. This will also be the scenario used to complete your Final Project. For this Assignment,

address the financial element of the project Charter used to plan the acquisition of an HIT solution for

the setting of choice. The financial analysis has two parts:

• Using the HIT Pro Forma Template provided in your Learning resources, complete the anticipated

capital and operating costs of the HIT solution that you are proposing in the Week 3 Assignment.

• Justify the assumptions that you used in your proforma.

Submit the entire project Charter inclusive of Week 3’s materials and Week 4’s HIT Pro Forma

Template and assumptions paper

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