Which of the Following Top-Down Methods Is Used When Projects

question 37

Multiple Choice

Which of the following top-down methods is used when projects closely follow past projects in regard to features and costs of those features, and result in costs being assigned by percentages to major segments of the project?

• A)Apportion
• B)Function point
• C)Phase estimating
• D)Learning curve
• E)Consensus

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Incremental Cost Approach

A method that analyzes the financial information relevant to a decision by focusing on the additional or incremental costs involved.

Discount Rate

The interest rate used in discounted cash flow analysis to calculate the present value of future cash flows.

Salvage Value

The estimated residual value of an asset after it has reached the end of its useful life.