For Large Enterprises, the Cost to License, Install, and Configure

question 81

True/False

For large enterprises, the cost to license, install, and configure products like ERP and CRM systems are usually a one-time fee running into approximately one million dollars.

---

Definitions:

Collection Float

The time period between when a payment is initiated by a debtor and when the funds are actually available to the creditor.

Transaction Motive

Refers to the need to hold cash for the purpose of conducting daily business transactions and operations.

Lockbox System

A service provided by banks to process payments by collecting and depositing checks into the company's account quickly.

NPV

Net Present Value (NPV) is a method used in capital budgeting to determine the value of an investment by calculating the present value of expected future cash flows using a specific discount rate.