PI c4

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11. The first step in determining the NPV is to _____. a. determine the estimated costs and benefits for the life of the project and the products it produces b. determine the discount rate c. calculate the net present value d. determine the cash flow

A

19. Which of the following are organizational process assets? a. Management systems c. Government standards b. The organization's infrastructure d. Marketplace conditions

A

4. The first step in the planning process is _____. a. to tie the information technology strategic plan to the organization's overall strategic plan c. to start defining potential IT projects in terms of their scope, benefits, and constraints b. to perform a business area analysis d. to choose which projects to do and assigning resources to work on them

A

6. In the _____ stage of selecting information technology projects, organizations define project scope, benefits, and constraints. a. project planning b. business area analysis c. resource allocation d. information technology strategy planning

A

10. Benefits minus costs is known as the _____. a. cost of capital c. discount factor b. cash flow d. opportunity cost of capital

B

14. Payback occurs when: a. the net cumulative benefits minus costs equal one. c. the net costs are lower than the cumulative benefits. b. the net cumulative benefits equal the net cumulative costs. d. the cumulative benefits are double the cumulative costs.

B

5. The _____ stage of information technology planning outlines business processes that are central to achieving strategic goals and helps determine which ones could most benefit from information technology. a. project planning b. business area analysis c. resource allocation d. information technology strategy planning

B

18. The business case includes information on _____. a. the business need for the project c. the project objective, high-level requirements, and time and cost goals b. relevant government or industry standards d. policies, procedures, guidelines, and systems that influence a project's success

C

21. The _____ section of the project plan should describe the major project functions and activities and identify those individuals who are in charge of them. a. organizational charts b. other organizational or process-related information c. project responsibilities d. management objectives

C

7. In the _____ stage of selecting information technology projects, organizations select information technology projects. a. project planning b. business area analysis c. resource allocation d. information technology strategy planning

C

10. Opportunities and directives are essentially the same thing.

F

12. The organization should complete low-priority projects before high-priority ones, if the low-priority ones take less time.

F

18. A project charter typically does not authorize the project manager to use organizational resources to complete the project.

F

22. It is necessary that IT project managers have prior technical experience in creating and managing IT products.

F

23. Corrective actions reduce the probability of negative consequences associated with project risks, while preventive actions should result in improvements in project performance.

F

5. A SWOT analysis, being a linear process, cannot be performed using the nonlinear mind mapping technique.

F

6. An organization's information technology project selection process should guide the strategic plan.

F

24. Change requests are always made in writing.

T

25. Organizational process asset updates are an important output of the closing process of a project.

T


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Chapter 16: Outcome Identification and Planning

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