Which of the Following Is an Advantage of Custom System

question 64

Multiple Choice

Which of the following is an advantage of custom system development?

• A)It has low overall costs and is inexpensive to run.
• B)It requires less time to go live.
• C)It is tailored closely to an organization's needs.
• D)It does not require in-house maintenance and upgrades.

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Definitions:

Capital Budgeting

The process of planning and evaluating investments in long-term assets to maximize returns or meet financial goals.

Discounted Cash Flow

A valuation method used to estimate the attractiveness of an investment opportunity, calculating the present value of expected future cash flows.

Internal Rate Of Return

A financial metric used to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment, calculated by subtracting the projected cash outflows from the present value of cash inflows.