INVESTMENTS AN INTRODUCTION 13TH
EDITION EXAM REVIEW TESTED
QUESTIONS WITH 100 PERCENT CORRECT
ANSWERS
◉ balanced scorecard (BSC)
Answer: A methodology that converts an organizations value drivers
to a series of defined metrics.
◉ cash flow
Answer: Benefits minus costs, or income minus expenses.
◉ discretionary costs
Answer: Costs that organizations have discretion in deciding
whether to fund them.
◉ discount factor
Answer: A multiplier for each year based on the discount rate and
year.
◉ discount rate
,Answer: The rate used to calculate the present value of future cash
flows.
◉ Gantt chart
Answer: A standard format for displaying project schedule
information by listing project activities and their corresponding
start and finish dates in a calendar format.
◉ internal rate of return (IRR)
Answer: The discount rate that results in an NPV of zero for a
project.
◉ lean
Answer: A management approach that focuses on creating more
value for customers by eliminating waste and optimizing processes.
◉ mind mapping
Answer: a technique that uses branches radiating out from a core
idea to structure thoughts and ideas
◉ net present value (NPV) analysis
Answer: A method of calculating the expected net monetary gain or
loss from a project by discounting all expected future cash inflows
and outflows to the present point in time.
, ◉ nondiscretionary costs
Answer: costs that organizations must fund to stay in business
◉ opportunity cost of capital
Answer: The return available by investing the capital elsewhere.
◉ payback period
Answer: the amount of time required for an investment to generate
cash flows sufficient to recover its initial cost
◉ product roadmap
Answer: A tool used to show a high level visual summary of the
vision and direction of a product or products over time.
◉ quarterly business review (QBR)
Answer: An agile approach to project planning where people meet to
link the business strategy with quarterly planning.
◉ required rate of return
Answer: The minimum acceptable rate of return on an investment.
EDITION EXAM REVIEW TESTED
QUESTIONS WITH 100 PERCENT CORRECT
ANSWERS
◉ balanced scorecard (BSC)
Answer: A methodology that converts an organizations value drivers
to a series of defined metrics.
◉ cash flow
Answer: Benefits minus costs, or income minus expenses.
◉ discretionary costs
Answer: Costs that organizations have discretion in deciding
whether to fund them.
◉ discount factor
Answer: A multiplier for each year based on the discount rate and
year.
◉ discount rate
,Answer: The rate used to calculate the present value of future cash
flows.
◉ Gantt chart
Answer: A standard format for displaying project schedule
information by listing project activities and their corresponding
start and finish dates in a calendar format.
◉ internal rate of return (IRR)
Answer: The discount rate that results in an NPV of zero for a
project.
◉ lean
Answer: A management approach that focuses on creating more
value for customers by eliminating waste and optimizing processes.
◉ mind mapping
Answer: a technique that uses branches radiating out from a core
idea to structure thoughts and ideas
◉ net present value (NPV) analysis
Answer: A method of calculating the expected net monetary gain or
loss from a project by discounting all expected future cash inflows
and outflows to the present point in time.
, ◉ nondiscretionary costs
Answer: costs that organizations must fund to stay in business
◉ opportunity cost of capital
Answer: The return available by investing the capital elsewhere.
◉ payback period
Answer: the amount of time required for an investment to generate
cash flows sufficient to recover its initial cost
◉ product roadmap
Answer: A tool used to show a high level visual summary of the
vision and direction of a product or products over time.
◉ quarterly business review (QBR)
Answer: An agile approach to project planning where people meet to
link the business strategy with quarterly planning.
◉ required rate of return
Answer: The minimum acceptable rate of return on an investment.
