Question: How is a break - even analysis used to determine whether to develop or acquire an information system? The analysis focuses on the relevant cash

How is a break-even analysis used to determine whether to develop or acquire an information system?
The analysis focuses on the relevant cash flow streams associated with the system at the organization's discount rate.
The analysis applies weights to different criteria.
The analysis tries to identify at what point (if ever) the system's tangible benefits equal its tangible costs.
The analysis focuses on understanding the total cost of acquisition as well as all costs associated with ongoing use and maintenance of a system.
 How is a break-even analysis used to determine whether to develop

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!