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Why Is the Decision About Which Architecture to Use When

question 53

Essay

Why is the decision about which architecture to use when implementing an ERP system so important and complex?


Definitions:

Hurdle Rate

The minimum acceptable rate of return on an investment that a manager or company seeks before pursuing a project or investment.

Capital-Budgeting

The process a business undertakes to evaluate potential major projects or investments, analyzing the prospective inflows and outflows to determine whether they meet a sufficient return on investment.

IRR Method

The Internal Rate of Return (IRR) method is a financial analysis tool used to evaluate the profitability of investments by finding the interest rate at which the net present value of all cash flows (both positive and negative) from a particular project equals zero.

Hurdle Rate

The minimum rate of return on an investment that a manager or company requires before pursuing a project or investment.

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