The WBS Is Best Suited for Projects That Have a Tangible

question 88

Multiple Choice

The WBS is best suited for projects that have a tangible outcome. Which of the following is used when the final outcome of the project is less tangible or is a product of a series of steps or phases?

• A) Responsibility matrix
• B) Organization breakdown structure
• C) A work breakdown structure is still effective for these types of projects.
• D) Priority matrix
• E) Process breakdown structure

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Definitions:

Cash Payback Period

The period of time required for the cash inflows from a capital investment project to equal the cash outflows, typically used as a measure of a project's liquidity.

Annual Net Cash Flows

The total amount of cash generated or spent by a business in a given year after all expenses and revenues.

Internal Rate of Return

A method used in capital budgeting to estimate the profitability of potential investments, calculated as the rate of return where the net present value of all cash flows is zero.

Present Value of Annuity

The current worth of a series of future cash flows, adjusted for interest, often used in calculating loans and investments.