A Project Manager Is Using a Simple Scoring Model to Decide

question 19

Multiple Choice

A project manager is using a simple scoring model to decide which of four projects is best,given the company's limited resources.The criteria,importance weights,and scores for each are shown in the table.Which project should be chosen? $$\begin{array} { | l | l | l | l | } \hline & & \text { Impartance } & \\ \text { Project } & \text { Criterin } &\text {Weight}& \text { Score } \\\hline & & & \\\hline & 1 & 1 & 3 \\\hline \text { Greenlight }&2 & 2 & 2 \\ \hline &3 & 3 & 1 \\\hline & & & \\\hline &1 & 1 & 2 \\\hline \text { Runway }& 2& 2 & 1 \\ \hline &3 & 3 & 3 \\\hline & & & \\\hline &1 & 1 & 1 \\\hline \mathbf{X}& 2 & 2 & 2 \\ \hline & 3 & 3 & 2 \\\hline & & & \\\hline & 1 & 1 & 2 \\\hline\text { Ilevomit } & 2 & 2 & 2 \\ \hline & 3 & 3 & 2 \\\hline\end{array}$$

• A)Project Greenlight
• B)Project Runway
• C)Project X
• D)Project Ilevomit

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Definitions:

Lease Criteria

The conditions under which a leasing agreement is classified as either a finance lease or an operating lease in financial accounting.

Operating Leases

Lease agreements for the use of equipment or property where the lessor retains ownership, typically for a term shorter than the asset's life.

Off-Balance Sheet Financing

Financial obligations not recorded on the company's balance sheet, often used to keep debt-to-equity ratios low.

Operating Lease

A lease agreement allowing the use of an asset without ownership, typically with shorter terms than a finance lease, and the lessor retains the risk of obsolescence.