Exam 15: Evaluating Ais Investments

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Benefits of IT initiatives should be measured in comparison to which of the following? A. The amount of information available. B. Current inputs of the existing IT processes. C. Revenues and costs that will occur without implementing the initiative. D. Non-financial aspects of the project.

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When considering the sensitivity of estimates used to evaluate IT initiatives, which of the following are you likely to do? A. Use multiple metrics to evaluate each IT initiative. B. Test the impact of changes in assumptions on the various financial metrics. C. Consider which groups in the organization will benefit. D. Develop exact quantifications of costs and benefits.

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Which of the following is not a question that businesses should answer before making major IT investments? A. What key business issues does it address? B. What are the risks of doing the project? C. How will success be measured? D. None of the above

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Which of the following is not a direct acquisition cost of an IT initiative? A. Cost of hardware B. Cost of business disruption C. Cost of project management D. Cost of software development

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The benefits of an IT project are not necessarily measurable in financial terms.

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The business case for an IT project does not need to address risk, since risk will be factored into the discount rate.

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One weakness of the internal rate of return financial metric is that larger projects tend to have higher internal rates of return.

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Benefits are often estimated without complete information.

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