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AHIP AHM-520 Exam - Topic 2 Question 68 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 68
Topic #: 2
[All AHM-520 Questions]

The Jade Health Plan used a profitability index (PI) to rank the following capital proposals:

Proposal PI

A0.45

B1.05

This information indicates that, of these two projects, Jade would most likely select:

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Suggested Answer: C

by Sue at Mar 29, 2023, 07:02 AM

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Buck
6 months ago
Just to clarify, a PI under 1 means negative NPV, right?
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Elly
6 months ago
Not sure about this, seems like B is the only logical option.
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Karima
6 months ago
Wait, how can A have a PI of 0.45 and still be considered?
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Tomoko
7 months ago
Totally agree, B is the way to go!
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Arletta
7 months ago
Proposal B has a PI of 1.05, so it's the clear choice!
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Launa
7 months ago
I feel like I might be mixing up the definitions. If Proposal A has a PI of 0.45, does that mean it's definitely a bad choice? I need to think this through more.
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Pete
7 months ago
This reminds me of a practice question where we had to choose between two projects based on their PIs. I think we always went for the higher PI, so it must be Proposal B.
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Haley
7 months ago
I'm a bit unsure about the NPV implications here. I thought a PI of 0.45 meant the project would have a negative NPV, but I'm not completely confident.
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Bettina
7 months ago
I remember that a PI greater than 1 indicates a good investment, so I think Proposal B is the right choice.
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Gracie
7 months ago
Okay, let's see. Since the question mentions identity-based authentication, I'm guessing the answer is either Kerberos or SAML. I'll need to weigh the pros and cons of each to determine the most likely option.
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Patrick
7 months ago
I'm a little unsure about this one. I know Okta integrates with LDAP, but I'm not totally clear on the specifics of how the groups are brought in.
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