Using net present value (NPV) to test the integrated model in building management information systems

Abstract

The integrated model is a new model that is recently developed in order to build the management information systems (MIS's) by using the classical approach system development methodology. The integrated model aims to address the drawbacks of the classical approach in consumption additional time and cost while building the MIS's. The integrated model was subjected to two tests by using the mathematical probability theories in order to ensure the validity of the integrated model in its missio. The tests results have recorded the success of the integrated model in its mission. These tests are considered as internal tests, and thus, the integrated model still needs to an external practical test, in order to achieve a complete testing system for the integrated model, which will increase the confidence of the systems builders in using the integrated model. From here, this research uses the theory of net present value (NPV) financial function to implement a theoretical-practical test in order to test the validity of the integrated model in its work and mission. Keywords: Management information system, MIS, integrated model, net present value, NPV. JEL Classification: