Traditional Valuation Methods Such as ROI, NPV, and IRR Cannot

question 24

True/False

Traditional valuation methods such as ROI, NPV, and IRR cannot be applied to information technology because it is technical, not business-oriented.

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Definitions:

Implied Warranty of Habitability

A legal doctrine that requires landlords to maintain residential rental properties in a condition fit for human habitation, even if not explicitly stated in the lease agreement.

Periodic-Tenancy Lease

A lease agreement that automatically renews for a period identical to the initial lease term, such as monthly or yearly, until terminated by either party.

Punitive Damages

Compensation awarded to a plaintiff that goes beyond reimbursement for actual losses and is imposed to punish the defendant and deter such conduct in the future. Also called exemplary damages.

Compensatory Damages

Money awarded to a plaintiff as reimbursement for her or his losses; based on the amount of actual damage or harm to property, lost wages or profits, pain and suffering, medical expenses, disability, etc.