The Principal Capital Budgeting Models for Evaluating Information Technology Projects

question 37

Multiple Choice

The principal capital budgeting models for evaluating information technology projects are the payback method,the accounting rate of return on investment (ROI) ,the net present value,and the:

• A)future present value.
• B)internal rate of return.
• C)external rate of return.
• D)ROPM (real options pricing model).
• E)present value of future cash flows.

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Definitions:

Shale

A fine-grained sedimentary rock that can contain significant amounts of oil and natural gas.

Magnitude 9.0

A measure on the Richter scale indicating an extremely powerful earthquake, capable of causing widespread destruction and significant alteration of the Earth's surface.

Lava Rock

A volcanic rock formed from the cooling and solidification of molten lava.

Igneous

Pertaining to rock formed from the cooling and solidification of magma or lava, distinguished by minerals crystallized from molten material.