Online Access Free PC-BA-FBA Practice Test

Which of the following statements is TRUE?

• A.Discounted cash flows do not usually take into account the time value of money.
• B.When comparing two projects, the one with the lower NPV should be preferred.
• C.It is preferable for the calculated IRR of a project to be below bank interest rates,
• D.The IRR of every project is based on it achieving a Net Present Value of zero.

An IT department needs to upgrade its hardware to run the new version of an established operating system. The cost of this required upgrade is $2 million. As an alternative, the IT director has suggested that the company should change to a completely different operating system. Although this will cost $6 million, the change will bring many other benefits, including cheaper maintenance costs and increased security.
What is the avoided cost in his proposal?

• A.$2 million.
• B.$8 million
• C.$6 million.
• D.$4 million

What is the business analyst doing when he or she compares the BAM with the current business situation?

• A.Conceptual modelling.
• B.Gap analysis
• C.Analysing perspective
• D.Defining CATVVOE.

What are business case development, subject matter expertise and procurement all examples of?

• A.Technique competencies required by business analysts.
• B.Behavioural skill competencies required by business analysts.
• C.Personal knowledge competencies required by business analysts.
• D.Business knowledge competencies required by business analysts.

When should benefits realisation be carried out?

• A.At the beginning of the project.
• B.At the end of the finalised feasibility study.
• C.Months or years after the end of the project.
• D.Immediately at the end of the project.