10 Questions
What is the main limitation of the Payback model?
Ignores the time value of money
What does a positive Net Present Value (NPV) indicate?
The project meets the minimum desired rate of return and is eligible for further consideration
What does the Net Present Value (NPV) model use to compute the present value of all net cash inflows?
Discount rate
Which model uses a list of questions to review potential projects and determine their acceptance or rejection?
Checklist Model
What is the main drawback of the Checklist Model?
It fails to answer the relative importance or value of a potential project.
Which nonfinancial strategic criterion aims to prevent government intervention and regulation?
To prevent government intervention and regulation
What does the organization need to do when reassessing its goals and priorities?
Evaluate the progress of current projects
Which type of projects involve technological breakthroughs with high commercial payoffs?
Oysters
What is used to balance the portfolio for risks and types of projects?
Priority system
Which term refers to projects that showed promise at one time but are no longer viable?
White Elephants
This quiz covers the Payback Model in project management, focusing on its use in measuring the time for project investment recovery, emphasizing cash flows, and its limitations such as ignoring the time value of money and profitability considerations. The content is based on material from Universiti Malaya's WIX2002 - Project Management course.
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