What Models Information and Provides Assistance in Evaluating and Choosing

question 8

Multiple Choice

What models information and provides assistance in evaluating and choosing among different courses of action?

• A) OLTP
• B) OLAP
• C) TPS
• D) DSS

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Definitions:

Capital Budgeting

The process by which investors or company management evaluate and select long-term investments that are likely to yield positive returns.

Long-Term Effects

The lasting outcomes or impacts that result from a specific action or event, considered over an extended period of time.

Short-Duration

Describes investments or financial instruments that have a short time until maturity, typically less than one year.

Net Present Value (NPV)

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment or project.