Project Changes Result from Three Basic Causes

question 12

Multiple Choice

Project changes result from three basic causes.Which of the following is not one of those causes?

• A)Uncertainty about the technology on which the work of the project or its output is based
• B)An increase in the knowledge base or sophistication of the client / user leading to scope creep
• C)Changes to the environment in which the project is being completed
• D)A modification of the rules applying to the process of carrying out the project or to its output

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Definitions:

Payback Period

The time it takes for an investment or project to generate cash flow or profits sufficient to cover the initial outlay or cost.

Scrap Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Net Operating Income

The income generated from a company's everyday business operations, excluding taxes and interest.

Discount Rate

The specified interest rate for determining the present value of future cash flows in the context of discounted cash flow studies.