Making IT Investments on the Basis of an Immediate Need

question 45

Multiple Choice

Making IT investments on the basis of an immediate need or threat are sometimes necessary.What can managers expect from making investments in this way?

• A)These are proactive approaches that will maximize ROI.
• B)These just-in-time approaches to investments minimize long-term costs.
• C)These are reactive approaches that can result in incompatible,redundant,or failed systems.
• D)These quick responses provide the best defenses.

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Definitions:

Effective Rate of Interest

The actual cost of borrowing or the actual return on savings, taking into account the effect of compounding interest.

Straight-Line Amortization

A method of allocating the cost of an intangible asset over its useful life in equal installments.

Cash Paid Out

Money that is spent or disbursed by a business, often related to operating expenses, purchasing assets, or repaying liabilities.

Current Calendar Year

The period from January 1 to December 31 of the present year, used for financial and administrative purposes.