Legacy Systems Are Still Used Because They

question 84

Multiple Choice

Legacy systems are still used because they

• A) can only be run on the older mainframe computers.
• B) are too expensive to redesign.
• C) integrate well using new Web services technologies.
• D) contain valuable data that would be lost during redesign.

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Definitions:

Depreciation Tax Shield

The reduction in income tax obligation resulting from the deduction of depreciation expenses.

Tax Rate

The percentage at which an individual or corporation is taxed on their income or profits.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, which evenly spreads the depreciable amount over the expected useful life of the asset.

After-Tax Salvage Value

The net value of a disposed asset after accounting for taxes on its sale.