Sarah Is Responsible for Purchasing a New Computer System for Her

question 4

Multiple Choice

Sarah is responsible for purchasing a new computer system for her department.Given the significant financial investment,Sarah has decided to use the rational decision-making model. The decision criteria have been identified.The next step is to:

• A)allocate weights to the criteria.
• B)evaluate the alternatives.
• C)develop possible alternatives.
• D)select the best alternative.

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Definitions:

Price/Earnings Ratio

A valuation metric for stocks calculated by dividing the market price per share by the earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Stock Market

A marketplace where shares of public companies are traded between investors.

Receivable Turnover Ratio

A financial metric that measures how efficiently a company collects cash from its customers by comparing net credit sales to average accounts receivable.

Return On Assets

A profitability ratio that measures how efficient a company is at using its assets to generate earnings, calculated as net income divided by total assets.