Since Our Perspective When Evaluating a Project Is That of All

question 19

True/False

Since our perspective when evaluating a project is that of all of the investors in the firm, creditors as well as stockholders, then we should evaluate the pretax cash flows produced by a project.

---

Definitions:

Pilot Conversion

Implementation process that introduces the new system in one part of the organization on a trial basis. When the new system is working properly, it is introduced in other parts of the organization.

Scope Creep

Adding functions to an information system after the project has begun.

Project Initiation

The phase in which a project is formally started, its scope defined, and stakeholders committed.

Functions Addition

The process of incorporating new capabilities or functionalities into an existing system or software.