ch 2 - Chapter 2 Initializing and Conceptualizing the IT...

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Chapter 2: Initializing and Conceptualizing the IT Project True/False 1. A methodology provides a strategic-level plan for managing and controlling IT projects. 2. A business case is a deliverable that documents the project’s goal as well as several alternatives or options. 3. Project Management processes include scope, schedule, budget and quality 4. The SDLC (systems development life cycle) is a deliverable from the project charter. 5. The project charter is a key deliverable for the second phase of the IT project methodology. 6. For the sake of efficiency and unity of purpose and direction, it is usually advisable to have the project manager take sole responsibility for developing the business case. 7. The focus of “the conceptualize and initialize" phase is to determine whether a proposed project should and can be done. 8. The MOV should be adjusted at each phase of a project to align with the realities of project execution. 9. Feasibility focuses on what can go wrong and what must go right. 10. Feasibility focuses on whether a particular alternative is doable and worth doing. 11. The MOV should explicitly name the technology that will support the IT project. 12. The total cost of ownership (TCO) includes only the direct or up-front costs and ongoing expenditures. 13. The total benefits of ownership (TBO) should address the benefits of an alternative over its useful life. 1
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14. A significant deficiency of the payback method of analyzing alternatives is the failure to account for the time value of money. 15. All cash flows over the useful life of a project alternative must be included in the payback method of analysis. 16. The net present value method of project valuation takes into account all relevant cash flows as well as the company’s required rate of return. 17. The answer to a breakeven analysis is almost always expressed in a currency metric. 18. Scoring models are useful because they allow for the inclusion of qualitative factors. 19. Selecting multiple risky projects that have low correlation to each other can result in a portfolio of projects whose overall risk is lower than the individual project’s risk.
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