Exam 15: Financial Analysis Tools

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____________________ is a percentage rate that measures profitability by comparing the total net benefits (the return) received from a project to the total costs (the investment) of the project.

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In present value analysis, most companies require a rate of return that is higher than the discount rate because of the degree of risk in any project compared with investing in a bond.

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The cost of customer dissatisfaction, lower employee morale, and reduced information availability are examples of ____.

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When IT department costs are not charged to other departments, the information systems department is called a(n) ____________________, because it generates accounting charges with no offsetting credits for IT services.

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ROI is calculated with the formula ____.

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