Traditional valuation methods such as ROI, NPV, and IRR cannot be applied to information technology because it is technical, not business-oriented.

Question

Quizplus · Accepted Answer

This statement is false. Traditional valuation methods such as ROI, NPV, and IRR can indeed be applied to information technology projects, just like any other business project. However, some adaptations may be necessary to account for the unique characteristics of IT projects, such as their high level of uncertainty and rapid rate of change.

Traditional Valuation Methods Such as ROI, NPV, and IRR Cannot