To Best Evaluate, from a Financial Standpoint, an IT Investment

question 65

Multiple Choice

To best evaluate, from a financial standpoint, an IT investment whose benefits cannot be firmly established in advance, you would use

• A) capital budgeting.
• B) the real option pricing model.
• C) a scoring model.
• D) the net present value.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time.

Revenue

The total amount of money earned by a business from its operational activities, before any expenses are subtracted.

Equipment Account

An account on a company's balance sheet that reports the value of the equipment that the company owns.

Beginning Balance

The amount of money in an account at the start of a new accounting period.