All of the Following Are Methods Used to Value an IT

question 2

Multiple Choice

All of the following are methods used to value an IT investment EXCEPT:

• A) Payback analysis
• B) ROI
• C) NPV
• D) CTO
• E) IRR

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Definitions:

Expense Account

An accounting ledger that tracks the outflow of economic resources or increase in liabilities, resulting in a decrease in equity.

Retained Earnings

The accumulated portion of net earnings not distributed to shareholders but reinvested in the business.

Shareholders' Equity

The ownership interest of shareholders in a company, calculated as total assets minus total liabilities.

Revenues

Income generated from normal business operations and includes discounts and deductions for returned merchandise.