Mary Is Recommending IT Investments in the Neighborhood of $250

question 30

Multiple Choice

Mary is recommending IT investments in the neighborhood of $250 million for her company. However, the board is hesitant since it's such as capital-intensive project. If the project fails, the company could go out of business. What financial calculation should they use?

• A) ROI
• B) NPV
• C) EVA
• D) IRR
• E) FV

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Definitions:

Metaphorical

Pertaining to or characterized by the use of a figure of speech in which a term or phrase is applied to something to which it is not literally applicable in order to suggest a resemblance.

Connotative

Pertaining to the implied or emotional meaning of a word, in contrast to its literal meaning.

Denotative

Relating to the explicit or direct meaning of a word or term, as opposed to its connotative (implied or associated) meanings.

Contextual

pertains to being related to or dependent on the context or surrounding circumstances that can influence interpretation, meaning, or behavior.