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Chapter 3 · Information Systems StrategyPractice
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CONCEPT PRACTICE

Return on investment

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Volume 2 · Chapter 3 · Textbook Exercises · Q4

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Which of the following is an index that is used as a qualitative calculation method for the investment effect in a computerization investment plan, and is calculated by dividing the profit that is generated by cost reduction and sales increase that result from the implementation of an information system by the investment amount?

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Source: FE Vol 2.pdf, PDF page 232, textbook p. 228 · Information-technology Promotion Agency, Japan · First Edition: April, 2015. ID: tb-v2-c3-q4. Publisher answer and commentary · private review.

Original question · Q4
Q4 
Which of the following is an index that is used as a qualitative calculation method for the 
investment effect in a computerization investment plan, and is calculated by dividing the profit 
that is generated by cost reduction and sales increase that result from the implementation of an 
information system by the investment amount? 
 
a) IRR 
b) NPV 
c) PBP 
d) ROI

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