A Company's Computers and Related Equipment Are Usually Paid for Through

question 26

Multiple Choice

A company's computers and related equipment are usually paid for through

• A)the overall corporate capital budget.
• B)special projects budgets.
• C)the department's budget in which the equipment is used.
• D)the IT department's budget.
• E)the project management office's budget.

---

Definitions:

Required Return

The expected return that investors seek from an investment, considering its risk level and the opportunity cost of forgoing other investments.

Profitability Index

A calculation that determines the relative profitability of an investment, expressed as the ratio of the present value of future cash flows over the initial investment cost.

Internal Rate Of Return

In financial evaluation, it's a measure used to assess the profitability of forthcoming investments, identified by the yield rate that renders the net present value of the project's cash flows neutral.

Required Rate Of Return

The minimum annual percentage return an investor expects to achieve by investing in a particular asset.