Podcast
Questions and Answers
What is the purpose of determining Return on Investment (ROI) for a project?
What is the purpose of determining Return on Investment (ROI) for a project?
- To measure the average rate of return on the invested money (correct)
- To calculate net present value
- To calculate total benefits
- To determine the break-even point
Which statement best describes a high Return on Investment (ROI)?
Which statement best describes a high Return on Investment (ROI)?
- The costs of the project are more than the benefits
- The project's benefits greatly exceed its costs (correct)
- The project has no costs
- The benefits of the project are less than the costs
Why is it cautioned in the text that Return on Investment (ROI) should not be the only measure of a project's wealth?
Why is it cautioned in the text that Return on Investment (ROI) should not be the only measure of a project's wealth?
- ROI calculations are too complex
- ROI can be misleading due to its limitations (correct)
- ROI does not consider total benefits
- ROI makes projects look less profitable than they are
What is another term used to refer to the Break-Even Point method?
What is another term used to refer to the Break-Even Point method?
How is the Break-Even Point method defined in relation to a project?
How is the Break-Even Point method defined in relation to a project?
Which financial concept involves dividing a project's net benefits by total costs to assess its worth?
Which financial concept involves dividing a project's net benefits by total costs to assess its worth?
What does the payback method measure?
What does the payback method measure?
What is an example of tangible benefits mentioned in the text?
What is an example of tangible benefits mentioned in the text?
How are intangible costs and benefits described in the text?
How are intangible costs and benefits described in the text?
Which of the following is true about the break-even point?
Which of the following is true about the break-even point?
Why is the break-even point considered biased against long-term projects?
Why is the break-even point considered biased against long-term projects?
What is the most effective strategy for estimating costs and benefits according to the text?
What is the most effective strategy for estimating costs and benefits according to the text?
If predicting a specific value for a cost or benefit proves difficult, what strategy is suggested in the text?
If predicting a specific value for a cost or benefit proves difficult, what strategy is suggested in the text?
What does organizational feasibility refer to in a system implementation?
What does organizational feasibility refer to in a system implementation?
Which of the following would not be considered a tangible benefit according to the text?
Which of the following would not be considered a tangible benefit according to the text?
Why is organizational feasibility often challenging to assess?
Why is organizational feasibility often challenging to assess?
What does Net Present Value (NPV) compare for a project?
What does Net Present Value (NPV) compare for a project?
What role does assigning specific dollar values to costs and benefits play in economic feasibility analysis?
What role does assigning specific dollar values to costs and benefits play in economic feasibility analysis?
