Multiply Choice 1. The TELOS study that determines whether a project can be completed in an acceptable

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Multiply Choice
1. The TELOS study that determines whether a project can be completed in an acceptable time frame is
a. a schedule feasibility study.
b. a time frame feasibility study.
c. an on-time feasibility study.
d. an economic completion feasibility study.
e. a length of contract feasibility study.

2. Which of the following is least likely to be an accountant’s role in the SDLC?
a. user
b. consultant
c. auditor
d. programmer
e. all of these are likely roles

3. The TELOS acronym is often used for determining the need for system changes. Which of the following types of feasibility studies are elements of TELOS?
a. legal, environmental, and economic
b. environmental, operational, and economic
c. technical, economic, legal, and practical
d. practical, technical, and operational
e. technical, operational, and economic

4. What name is given to the time value of money technique that discounts the after-tax cash flows for a project over its life to time period zero using the company’s minimum desired rate of return?
a. net present value method
b. capital rationing method
c. payback method
d. average rate of return method a accounting rate of return method

5. One-time costs of system development include all of the following EXCEPT
a. site preparation.
b. hardware maintenance.
c. programming.
d. hardware acquisition.
e. data conversion.

6. Which of the following aspects of a cost-benefit study would have the greatest uncertainty as to its precise value?
a. the tangible costs
b. the intangible costs
c. the tangible benefits
d. the intangible benefits
e. none of the above because they are equally precise

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...
Capital Rationing
Capital rationing is the act of placing restrictions on the amount of new investments or projects undertaken by a company. Capital rationing is the decision process used to select capital projects when there is a limited amount of funding available....
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