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NEW QUESTION: 1





A. No
B. Yes
Answer: B

NEW QUESTION: 2
An organization has selected a solution for a business need and the business analyst has elected to use the time boxing/budgeting technique for requirements prioritization. What is the time boxing/budgeting technique?
A. It's used to determine which requirements can be implemented fastest and for the least amount of cost.
B. It's a method to prioritize requirements based on a pre-determined budget and/or a pre-determined deadline.
C. It's a method to rank requirements in different boxes based on time, cost, risk, and need.
D. It's used when there are conflicting requirements that must be resolved quickly and cost efficiently.
Answer: B
Explanation:
Explanation/Reference:
The timeboxing/budgeting technique for requirements prioritization allows the business analyst to filter requirements down to meet the amount of funds available and the amount of schedule that may be available.
B is incorrect. This isn't a valid definition of the timeboxing/budgeting technique for requirements
prioritization.
D is incorrect. This isn't a valid definition of the timeboxing/budgeting technique for requirements
prioritization.
C is incorrect. This isn't a valid definition of the timeboxing/budgeting technique for requirements
prioritization.

NEW QUESTION: 3
Which of the following statements is most correct?
A. Generally, we do not need to adjust project cash flows to take into account the effects of inflation, since inflation is not accounted for in the cost of capital.
B. All of these statements are correct.
C. For comparing mutually exclusive projects with unequal lives, replacement chain analysis leads to the same decision as obtained by calculating the equivalent annual annuity (EAA).
D. The rate of depreciation affects accounting statements, but has no effect on the firm's capital budgeting decisions.
E. In comparing mutually exclusive projects with unequal lives, you should always choose the project which has the highest NPV.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The replacement chain analysis and the equivalent annual annuity methods lead to the same decision.
Depreciation affects a firm's cash flow, which affects its capital budgeting decisions. The project with the highest extended NPV should be chosen. The cost of capital reflects inflation; therefore, project cash flows must be adjusted for inflation.

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