Author Question: List and explain five methods for evaluating IT investments. What will be an ideal ... (Read 114 times)

neverstopbelieb · **on:** Jul 7, 2018

List and explain five methods for evaluating IT investments.

What will be an ideal response?

Question 2

The _________ is used to send files from one system to another under user command.

A. UDP B. SMTP

C. FTP D. SSH

wfdfwc23 · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

ROI, payback period, net present value, value analysis, and information economics are five methods. ROI uses a formula to determine the value of a product by dividing net benefits by the initial cost of the project. The payback period calculates how long it will take to recover the cost of a new project. The net present value discounts the net benefits for each year back to their present value, and then compares them with the cost of doing the project. Value analysis evaluates the performance of a low-cost, small-scale version of the project before committing major investment dollars to the full project. Information economics looks at how a project will impact key organizational objectives. Exhibit 13.7 identifies additional methods.

Answer to Question 2

C