The concept of comparing present cash outlays to future expected ...

[Haya94]

The concept of comparing present cash outlays to future expected returns best defines:
 
  A) cost/benefit analysis.
  B) internal rate of return.
  C) time value of money.
  D) investment return analysis.
  E) monetary futures analysis.

Question 2

A relationship must be turned into an associative entity when the associative entity has other relationships with entities besides the relationship that caused its creation.
 
  Indicate whether the statement is true or false

[bhavsar]

Answer to Question 1

C
Explanation: C) Because most information systems have a useful life of more than one year and will provide benefits and incur expenses for more than one year, most techniques for analyzing economic feasibility employ the concept of the time value of money (TVM).
CL

Answer to Question 2

TRUE
Explanation: This is an example of a many to many relationship which requires an associative entity to function properly.
CL

[Haya94]

Gracias!

[smrtceo]

TYSM