ROPMs (Real Options Pricing Models)value Information Systems Similar to Stock

question 32

Multiple Choice

ROPMs (real options pricing models) value information systems similar to stock options,in that

• A)ROPMs can be bought and sold like stocks.
• B)a company's worth can be evaluated by the worth of their ROPMs.
• C)initial expenditures on IT projects are seen as creating the right to pursue and obtain benefits from the system at a later date.
• D)expenditures and benefits from IT projects are seen as inflows and outflows of cash that can be treated themselves like options.
• E)the price paid today for information systems reflects their future cash flows.

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