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PMI-PBA Exam - Topic 9 Question 57 Discussion

A business analyst is conducting a cost-benefit analysis of potential solution options. The stakeholders have indicated that the estimated growth rate is very important to them.Which technique will allow the business analyst to determine this information?
C) Internal rate of return
A) Payback period
B) Net present value (NPV)
D) Return on investment (ROI)

PMI-PBA Exam - Topic 9 Question 57 Discussion

Actual exam question for PMI's PMI-PBA exam
Question #: 57
Topic #: 9
[All PMI-PBA Questions]

A business analyst is conducting a cost-benefit analysis of potential solution options. The stakeholders have indicated that the estimated growth rate is very important to them.

Which technique will allow the business analyst to determine this information?

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Suggested Answer: C

by Denise at Aug 24, 2022, 07:47 AM

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Remedios
7 months ago
Payback period won't help with growth estimates!
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Therese
7 months ago
Wait, can NPV really show growth? Not so sure about that.
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Isabella
7 months ago
ROI doesn't really capture growth rates, though.
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Lucina
8 months ago
I think IRR is the way to go here.
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Silva
8 months ago
NPV is great for estimating growth!
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Goldie
8 months ago
ROI seems more about profitability than growth rates, so I’m leaning towards internal rate of return as the best option here.
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William
8 months ago
I feel like the payback period is too simplistic for this question. It doesn't really account for growth, right?
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Daniel
8 months ago
I remember practicing with NPV and how it considers the time value of money, but I don't recall if it directly addresses growth rates.
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Cathern
8 months ago
I think the internal rate of return might be the right choice since it helps assess the growth rate of an investment, but I'm not completely sure.
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Arletta
8 months ago
This seems like a straightforward question about strategic investment decisions. I'll focus on identifying the key factors that support the investment, like the first mover advantage, market development opportunity, and stakeholder approval.
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Tammara
8 months ago
I'm pretty confident I know the answer to this one. Option B is correct - Log Message lets you set different tracing levels, while Write Line is just a Log Message set to the Trace level.
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Rosina
8 months ago
Okay, so we have a cluster with some outliers in the income range. I'm not sure if decreasing the number of clusters is the best approach - that might just lump those 30 people in with a different group that doesn't really fit them either. Removing them from the dataset seems a bit drastic without understanding why they're so different.
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Blair
8 months ago
I'm a bit confused on this one. I know digital signatures are used to verify the authenticity of data, but I'm not sure which attack would specifically target that. I'll have to review my notes and try to reason through the options.
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Iesha
1 year ago
I heard the stakeholders are offering a free crystal ball to the candidate who picks the right answer. Guess I better go with NPV!
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Antione
1 year ago
Return on investment (ROI)? More like 'Return on Ignorance'! That metric is so outdated, it's like using a rotary phone to do a cost-benefit analysis.
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Aliza
11 months ago
User 3
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Skye
12 months ago
User 2
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Emilio
1 year ago
User 1
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Val
1 year ago
Internal rate of return (IRR) is the best option here. It's the discount rate that makes the NPV equal to zero, so it's a direct measure of the growth rate.
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Queen
12 months ago
A: Definitely, it's the discount rate that makes the NPV equal to zero.
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Rebecka
12 months ago
B: Yeah, I agree. It directly measures the growth rate.
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Verda
12 months ago
A: I think Internal rate of return (IRR) is the best option here.
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Ariel
1 year ago
Seriously, who needs growth rates? I just want to know how quickly I'll get my money back. Payback period is the way to go!
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Eleonora
1 year ago
Maybe, but for now, I just want to focus on when I'll recoup my initial investment.
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Timothy
1 year ago
But don't you think considering the growth rate is important for long-term success?
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Zona
1 year ago
I agree, payback period is important to know when I'll see a return on my investment.
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Lonna
1 year ago
Net present value (NPV) is the way to go! It takes into account the time value of money, which is crucial for analyzing growth rates.
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Lavina
1 year ago
I think NPV is the most accurate way to determine estimated growth rates.
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Lavina
1 year ago
I agree, NPV is definitely the best option for considering growth rates.
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Mabel
1 year ago
I'm not sure, but I think C) Internal rate of return could also help determine the estimated growth rate.
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Yvonne
1 year ago
I agree with Chan. NPV takes into account the estimated growth rate.
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Chan
1 year ago
I think the answer is B) Net present value (NPV).
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