Briefly Describe the Four Main Conversion Strategies for Changing from an Old

question 13

Essay

Briefly describe the four main conversion strategies for changing from an old system to a new system.

---

Definitions:

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.

Bond's Yield

The return an investor realizes on a bond, calculated as the interest or dividends received divided by the price of the bond.

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and satisfy its shareholders and creditors.

NPV

Net Present Value - a calculation used to assess the profitability of a project or investment by summing the present values of all cash flows associated with it.