By Compressing Files, a Backup Utility Program Requires More Storage

question 148

True/False

By compressing files, a backup utility program requires more storage space for the backup files than for the original files.

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Definitions:

Accounting Rate of Return

This measures the return on investment by dividing the average annual profit by the initial investment cost, often used for evaluating the profitability of potential investments.

Payback Period

The amount of time it takes for an investment to generate cash flows sufficient to recoup the initial investment cost.

Straight-Line Depreciation

Straight-Line Depreciation is a method of allocating the cost of a tangible asset over its useful life in equal annual amounts, reflecting a constant rate of depreciation.

Net Present Value

A financial metric that calculates the value of projected cash flows, adjusted for the time value of money, to determine the profitability of an investment.