Dell Computer's Use of Information Systems to Improve Efficiency and Implement

question 35

Multiple Choice

Dell Computer's use of information systems to improve efficiency and implement "mass customization" techniques to maintain consistent profitability and an industry lead illustrates which business objective?

• A) improved flexibility
• B) improved business practices
• C) competitive advantage
• D) survival

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Definitions:

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Capital Rationing

A strategy or decision-making process that involves allocating and limiting investment funds to various projects to maximize a company's value.

Annuity

A financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.

Internal Rate of Return Method

A financial analysis tool used to evaluate the profitability of investments. It is the rate of return at which the net present value of all cash flows (positive and negative) from a project or investment equals zero.