L02 Quiz 207

When the project NPV is high and IRR is above the minimum expected, which of the following actions is most recommended?

• Deny the project

• Approve the project

• Consider other financial factors

• Consider other non-financial factors

Which of the following financial method does this definition describe? “The interest rate at which the net present value of all the cash flows (both +ve and -ve) from a project or investment equal zero.”

• Breakeven Point

• Net Present Value

• Return on Investment

• Internal Rate of Return

A project’s Net Present Value (NPV) can be negative.

• TRUE

• FALSE

Which of the following methods can be used to determine project feasibility?

• Research

• Prototype

• Time-boxing

• Implementing

The advantages of selecting a project using the checklist model are:

• Flexible

• Customisable

• Thorough and insightful

• Applicable across various projects and regions

Which of the following statements about project feasibility is NOT true?

• To determine the feasibility of a project you only need to look at scope of the project.

• Project feasibility is about managing the resources available to you in a manner that meets the stakeholder’s expectations.

• Just because resources are limited and the time to complete a project is short, it doesn’t mean that the project is not feasible.

• A key step in determining the feasibility of a project is to reassess the project solution and task with the line employees.

Besides using financial methods for project selection, EXPLAIN 3 other factors organisations should consider.