Author Question: The analysis technique that uses a discount rate determined from the company's cost of capital to ... (Read 102 times)

berenicecastro · **on:** Jul 7, 2018

The analysis technique that uses a discount rate determined from the company's cost of capital to establish the present value of a project is commonly called:

A) return on investment (ROI).
B) break-even analysis (BEA).
C) net present value (NPV).
D) future value (FV).
E) currency rate analysis (CRA).

Question 2

During the designing the human interface step of the design phase, you would enumerate different potential implementation environments that could be used to deliver the different sets of capabilities.

Indicate whether the statement is true or false

soda0602 · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

C
Explanation: C) NPV uses a discount rate determined from the company's cost of capital to establish the present value of a project. The discount rate is used to determine the present value of both cash receipts and outlays.
CL

Answer to Question 2

FALSE
Explanation: Shaping alternative system design strategies involves enumerating different potential implementation environments that could be used to deliver the different sets of capabilities.
CL