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 breakeven 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.
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