Project Management The four techniques used to analyze the costs and benefits of a proposed system are breakeven analysis, payback analysis, payback analysis cash flow and present value analysis. Breakeven analysis is a supply-side analysis. Only the costs of break-even sales are analyzed. It does not analyze how demand can be affected at different price levels. A strength of breakeven analysis is that it is relatively simple in concept, and the formula can be easily understood and used by most people. Another strength is that it provides vital information when making a decision. The weakness of the break-even analysis is that it assumes that all production will be sold. It is difficult to apply break-even analysis when a company sells more than one product. The draw cannot show what will surely happen. The payback analysis method is the simplest analysis method to use when examining one or more major project options. It tells you how long it will take to recoup the money you will spend on the project. The reimbursement analysis helps you decide whether to undertake the project or not. The biggest selling point of the repayment method is that it is simple. The payback analysis method is used to make rapid project evaluations. The weakness of the repayment method is that the method ignores the time value of money. The payback analysis method does not consider cash inflows from a project that may occur after the initial investment has been recovered. A cash flow analysis is a list of cash flows into and out of the project. It's like your checking account at your bank. Deposits represent cash inflows and withdrawals are cash outflows. The balance in your checking account represents your net cash flow at a specific time... middle of paper....../04/the-10-best-qualities-of-a-project-manager/Work Structure (WBS) in the definition and resources of project management. (n.d.). Work Breakdown Structure (WBS) in project management definition and resources. Retrieved April 11, 2014, from http://glossary.tenrox.com/Work-Breakdown-Structure.htmPERT (Program Evaluation Review Technique) chart. (n.d.). What is it?. Retrieved April 11, 2014, from http://searchsoftwarequality.techtarget.com/definition/PERT-chartPayback Period. (n.d.). Investipedia. Retrieved April 11, 2014, from http://www.investopedia.com/terms/p/paybackperiod.aspPresent Value - PV. (n.d.). Investipedia. Retrieved April 11, 2014, from http://www.investopedia.com/terms/p/presentvalue.aspUnderstanding Cash Flow Analysis. (n.d.). Understand cash flow analysis. Retrieved April 11, 2014, from https://www.extension.iastate.edu/agdm/wholefarm/html/c3-14.html