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You Are an IT Project Manager for an Advertising Firm

question 76

Multiple Choice

You are an IT project manager for an advertising firm. The firm wishes to create an online tool that will be used to survey focus group reactions to products in development. The most important consideration for the firm is being able to offer the tool as soon as possible as a new corporate service. However, you know that many of the senior managers that are business owners of this project have difficulty in understanding technical or software development issues, and are likely to change their requirements during the course of development. What development method would be most successful for this project?

Definitions:

Weighted Average Cost of Capital (WACC)

WACC represents the average rate that a company is expected to pay to finance its assets, weighted by the proportion of debt and equity financing.

Terminal Value (TV)

Value of operations at the end of the explicit forecast period; it is equal to the present value of all free cash flows beyond the forecast period, discounted back to the end of the forecast period at the weighted average cost of capital.

Payback Period

The duration of time it takes for an investment to recoup its initial cost, often used to assess the risk or profitability of a project.

Cash Flows

The net amount of cash being transferred into and out of a business, influencing the company's liquidity, solvency, and overall financial health.