176) Big Books Inc. has determined that their new proposed system project supports the firm's strategic goals and meets user information requirements. In preparation of this undertaking they are...

176) Big Books Inc. has determined that their new proposed system project supports the firm's strategic goals and meets user information requirements. In preparation of this undertaking they are investigating how the value of systems from a financial perspective gives a return of invested capital. Big Books Inc. Wants to make sure that the particular information system investment produces sufficient returns to justify its costs? What methodology should Big Books Inc. follow to answer these questions?

177) Big Books Inc. has determined that the principal capital budgeting models for evaluating IT projects are: the payback method, the accounting rate of return on investment (ROI), net present value, and the internal rate of return (IRR) will not work very well for their current proposed project. explain to Big Books Inc. the Real options pricing models (ROPMs)