Conversion by Direct Changeover Means That, on a Specified Date

question 53

True/False

Conversion by direct changeover means that, on a specified date, users stop using the old system and the new system is put into use.

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Definitions:

IRR

The Internal Rate of Return, a financial metric used to estimate the profitability of investments by calculating the interest rate at which the net present value of all cash flows (both positive and negative) from a project equal zero.

Investment

Allocating resources, usually money, with the expectation of generating an income or profit.

Cash Flows

The total amount of money being transferred in and out of a business, particularly in relation to liquidity.

Payback Period

The amount of time it takes to recover the cost of an investment through its cash inflows.