During the Systems Investigation Stage, __________ Studies Are Done to Determine

question 35

Multiple Choice

During the systems investigation stage, __________ studies are done to determine if the hardware, software, and communications components can be developed and/or acquired to solve the business problem.

• A) Economic feasibility
• B) Technical feasibility
• C) ROI
• D) NPV

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Definitions:

Present Value Index

A ratio used to evaluate the relative profitability of an investment or project by comparing the present value of cash inflows to the present value of cash outflows.

Interest

The charge for borrowing money, typically expressed as an annual percentage rate, or the income earned from lending funds.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Average Rate of Return

A financial metric used to estimate the profitability of an investment, calculated as the average annual profit of the investment divided by its initial cost.