All of the Following Statements Correctly Describe a Contemporary Approach

question 16

Multiple Choice

All of the following statements correctly describe a contemporary approach to create the Work Breakdown Structure (WBS) for a project EXCEPT:​ 

• A) Project teams may adopt a top-down approach to construct the WBS. 
• B) Project teams may use a template or a WBS from a previous project as a starting point. 
• C) Project teams may rely upon the project manager to create all levels of the WBS. 
• D) Project teams may jump start the WBS construction with a brainstorming session.

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Definitions:

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Project Profitability Index

A financial metric that compares the present value of a project's expected cash flows to its initial investment, used to evaluate the relative profitability of investments.

Discount Rate

The rate of interest applied in DCF evaluations to estimate the current worth of future cash inflows.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess profitability.