In the ____________________ System Cutover Approach, Components of the New

question 20

Multiple Choice

In the ____________________ system cutover approach, components of the new system are slowly phased in while components of the old system ware slowly phased out.

• A) pilot start-up
• B) phase-in
• C) parallel start-up
• D) direct conversion

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Definitions:

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of a tangible asset over its useful life in equal annual amounts, representing a consistent expense charge over the period.

Net Present Value

A calculation used to assess the profitability of an investment, measuring the difference between the present value of cash inflows and outflows over a period of time.

Payback Period

The time required for the return on an investment to repay the sum of the original investment.

Annual After-Tax Net Income

The amount of money a company earns in one year after all expenses and taxes have been deducted.