Explain the Modified Scorecard Approach to Measuring IT Value

question 23

Essay

Explain the Modified scorecard approach to measuring IT value. What is the benefit of this approach?

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Definitions:

Present Value Factor

A multiplier used to determine the present value of a future cash flow, taking into account a specific discount rate.

Annuity

An investment vehicle providing a constant flow of payments to the owner, usually utilised as a source of income for retired people.

Net Cash Flow

The variance between the cash coming into and going out of a business within a set timeframe.

Compound Interest

The calculation of interest on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.