All of the Following Techniques Are Used to Validate Electronic

question 12

Multiple Choice

All of the following techniques are used to validate electronic data interchange transactions except

• A) value added networks can compare passwords to a valid customer file before message transmission
• B) prior to converting the message, the translation software of the receiving company can compare the password against a validation file in the firm's database
• C) the recipient's application software can validate the password prior to processing
• D) the recipient's application software can validate the password after the transaction has been processed

---

Definitions:

Cost of Capital

The rate of return required by a company to undertake an investment or project, often used as a discount rate in capital budgeting.

Payback Method

A capital budgeting technique that calculates the time required to recoup the cost of an investment, ignoring the time value of money.

MIRRs

Modified Internal Rate of Return (MIRR) is a financial metric used to assess the profitability of investments, adjusting the internal rate of return (IRR) to account for differences in the reinvestment rate and financing costs.

IRRs

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows equal to zero.