Sabella Cycles Declared Bankruptcy in 2013 and Has Since Closed

question 68

Multiple Choice

Sabella Cycles declared bankruptcy in 2013 and has since closed 5 outlets,or approximately 25% of its locations.Sabella needs to reduce the costs of operating the firm's information systems.To accomplish this,Sabella might decide to

• A)replace the existing system with one of a smaller scale.
• B)customize the existing system.
• C)outsource system operations.
• D)purchase a canned software system.

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Definitions:

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, important in discounting and investment decision making.

Equal Payments

Regular payments of the same amount, typically used in loan repayment or installment plans.

Equal Intervals

Regular, consistent spaces or periods of time between events or items.