Information Technology Project Management 8th Edition By Kathy Schwalbe – Test Bank

 

 

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Sample Questions

 

True / False

 

1. In project integration management, directing and managing project execution involves carrying out the project management plan by performing the activities included in it.   a. True   b. False   ANSWER:   True RATIONALE:   Feedback: Directing and managing project work involves carrying out the project management plan by performing the activities included in it. The outputs of this process are deliverables, work performance information, change requests, project management plan updates, and project documents updates. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.138 LEARNING OBJECTIVES:   INFO.SCHW.14.21 – LO: 4-1 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   What Is Project Integration Management? KEYWORDS:   Bloom’s: Comprehension

 

2. Interface management involves identifying and managing the points of interaction between various elements of a project.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: Interface management involves identifying and managing the points of interaction between various elements of a project. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.140 LEARNING OBJECTIVES:   INFO.SCHW.14.21 – LO: 4-1 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   What Is Project Integration Management? KEYWORDS:   Bloom’s: Comprehension

 

3. The number of interfaces in a single project is limited, and does not depend on the number of people involved in the project.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: Project integration management includes interface management, which involves identifying and managing the points of interaction between various elements of a project. The number of interfaces can increase exponentially as the number of people involved in a project increases. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.140 LEARNING OBJECTIVES:   INFO.SCHW.14.21 – LO: 4-1 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   What Is Project Integration Management? KEYWORDS:   Bloom’s: Comprehension

 

4. Project integration management must occur just within the context of a particular project.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: Project integration management must occur within the context of the entire organization, not just within a particular project. The project manager must integrate the work of the project with the ongoing operations of the organization. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.141 LEARNING OBJECTIVES:   INFO.SCHW.14.21 – LO: 4-1 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   What Is Project Integration Management? KEYWORDS:   Bloom’s: Knowledge

 

5. A SWOT analysis, being a linear process, cannot be performed using the nonlinear mind mapping technique.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: Some people like to perform a SWOT analysis by using mind mapping, a technique that uses branches radiating from a core idea to structure thoughts and ideas. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.142 LEARNING OBJECTIVES:   INFO.SCHW.14.22 – LO: 4-2 NATIONAL STANDARDS:   United States – BUSPROG: Analytic TOPICS:   Strategic Planning And Project Selection KEYWORDS:   Bloom’s: Knowledge

 

6. An organization’s information technology project selection process should guide the strategic plan.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: Aligning IT projects with business strategy is consistently a top concern for CIOs. Most organizations face thousands of problems and opportunities for improvement. Therefore, an organization’s strategic plan should guide the IT project selection process. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.144 LEARNING OBJECTIVES:   INFO.SCHW.14.22 – LO: 4-2 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Strategic Planning And Project Selection KEYWORDS:   Bloom’s: Knowledge

 

7. Information systems can help an organization support a strategy of being a low-cost producer.   a. True   b. False   ANSWER:   True RATIONALE:   Feedback: Many information systems are classified as “strategic” because they directly support key business strategies. For example, information systems can help an organization support a strategy of being a low-cost producer. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.145 LEARNING OBJECTIVES:   INFO.SCHW.14.22 – LO: 4-2 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Strategic Planning And Project Selection KEYWORDS:   Bloom’s: Knowledge

 

8. Projects that address broad organizational needs are likely to fail.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: Projects that address broad organizational needs are much more likely to be successful because they will be important to the organization. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.146 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Comprehension

 

9. As projects progress, the organization must reevaluate the need, funding, and will for each project to determine if the project should be continued, redefined, or terminated.   a. True   b. False   ANSWER:   True RATIONALE:   Feedback: As projects progress, the organization must reevaluate the need, funding, and will for each project to determine if it should be continued, redefined, or terminated. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.146 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Comprehension

 

10. Opportunities and directives are essentially the same thing.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: Opportunities are chances to improve the organization. Directives are new requirements imposed by management, government, or some external influence. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.147 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Comprehension

 

11. Projects that arise as a result of problems and directives must be resolved quickly to avoid hurting an organization’s business.   a. True   b. False   ANSWER:   True RATIONALE:   Feedback: It is often easier to get approval and funding for projects that address problems or directives because the organization must respond to these categories to avoid hurting their business. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.147 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Comprehension

 

12. The organization should complete low-priority projects before high-priority ones, if the low-priority ones take less time.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: Organizations can also categorize IT projects as having high, medium, or low priority based on the current business environment. An organization should always complete high-priority projects first, even if a low- or medium-priority project could be finished in less time. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.147 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Comprehension

 

13. An organization should consider only projects with a negative NPV if financial value is a key criterion for project selection.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: An organization should consider only projects with a positive NPV if financial value is a key criterion for project selection. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.148 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Comprehension

 

14. NPV analysis is a method for making equal comparisons between cash flows for multi-year projects.   a. True   b. False   ANSWER:   True RATIONALE:   Feedback: NPV analysis is a method for making equal comparisons between cash flows for multi-year projects. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.149 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Knowledge

 

15. An annual discount factor is a multiplier for each year based on the discount rate and year.   a. True   b. False   ANSWER:   True RATIONALE:   Feedback: The annual discount factor is a multiplier for each year based on the discount rate and year. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.149 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Knowledge

 

16. The ROI is always positive.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: The ROI is always a percentage. It can be positive or negative. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.151 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Knowledge

 

17. Payback period is the amount of time it will take to recoup, in the form of net cash inflows, the total dollars invested in a project.   a. True   b. False   ANSWER:   True RATIONALE:   Feedback: Payback analysis is another important financial tool when selecting projects. Payback period is the amount of time it will take to recoup the total dollars invested in a project, in terms of net cash inflows. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.151 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Knowledge

 

18. A project charter typically does not authorize the project manager to use organizational resources to complete the project.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: A project charter is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management. It authorizes the project manager to use organizational resources to complete the project. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.155 LEARNING OBJECTIVES:   INFO.SCHW.14.24 – LO: 4-4 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Developing A Project Charter KEYWORDS:   Bloom’s: Knowledge

 

19. Some organizations initiate projects using a contract in place of a project charter.   a. True   b. False   ANSWER:   True RATIONALE:   Feedback: Instead of project charters, some organizations initiate projects using a simple letter of agreement, while others use much longer documents or formal contracts. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.155 LEARNING OBJECTIVES:   INFO.SCHW.14.24 – LO: 4-4 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Developing A Project Charter KEYWORDS:   Bloom’s: Knowledge

 

20. Many projects fail because of unclear requirements and expectations, so starting with a payback analysis makes a lot of sense.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: Many projects fail because of unclear requirements and expectations, so starting with a project charter makes a lot of sense.     POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.156 LEARNING OBJECTIVES:   INFO.SCHW.14.24 – LO: 4-4 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Developing A Project Charter KEYWORDS:   Bloom’s: Comprehension

 

21. The introduction or overview of a project must only include a list of definitions and acronyms.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: The introduction or overview of the project should include the following information: the project name; a brief description of the project and the need it addresses; the sponsor’s name; the names of the project manager and key team members; deliverables of the project; a list of important reference materials; and a list of definitions and acronyms. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.158-159 LEARNING OBJECTIVES:   INFO.SCHW.14.25 – LO: 4-5 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Developing A Project Management Plan KEYWORDS:   Bloom’s: Knowledge

 

22. A Gantt chart is the same as a project management plan.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: The project management plan is much more than a Gantt chart. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.161 LEARNING OBJECTIVES:   INFO.SCHW.14.25 – LO: 4-5 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Developing A Project Management Plan KEYWORDS:   Bloom’s: Comprehension

 

23. It is necessary that IT project managers have prior technical experience in creating and managing IT products.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: It is often helpful for IT project managers to have prior technical experience or at least a working knowledge of IT products. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.164 LEARNING OBJECTIVES:   INFO.SCHW.14.26 – LO: 4-6 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Directing And Managing Project Work KEYWORDS:   Bloom’s: Comprehension

 

24. Corrective actions reduce the probability of negative consequences associated with project risks, while preventive actions should result in improvements in project performance.   a. True   b. False   ANSWER:   False RATIONALE:   Feedback: Corrective actions should result in improvements in project performance. Preventive actions reduce the probability of negative consequences associated with project risks. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.167 LEARNING OBJECTIVES:   INFO.SCHW.14.27 – LO: 4-7 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Monitoring And Controlling Project Work KEYWORDS:   Bloom’s: Comprehension

 

25. Change requests are always made in writing.   a. True   b. False   ANSWER:   True RATIONALE:   Feedback: Change requests are common on projects and occur in many different forms. They can be oral or written, formal or informal. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.168 LEARNING OBJECTIVES:   INFO.SCHW.14.28 – LO: 4-8 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Performing Integrated Change Control KEYWORDS:   Bloom’s: Comprehension

 

26. Organizational process asset updates are an important output of the closing process of a project.   a. True   b. False   ANSWER:   True RATIONALE:   Feedback: The project team should provide a list of project documentation, project closure documents, and historical information produced by the project in a useful format. This information is considered a process asset. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.172 LEARNING OBJECTIVES:   INFO.SCHW.14.29 – LO: 4-9 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Closing Projects Or Phases KEYWORDS:   Bloom’s: Knowledge

 

Multiple Choice

 

27. _____ involves working with stakeholders to create the document that formally authorizes a project.   a. Developing the project charter   b. Developing the preliminary project scope statement   c. Developing the project management plan   d. Performing integrated change control   ANSWER:   a RATIONALE:   Feedback: Developing the project charter involves working with stakeholders to create the document that formally authorizes a project —the charter. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.138 LEARNING OBJECTIVES:   INFO.SCHW.14.21 – LO: 4-1 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   What Is Project Integration Management? KEYWORDS:   Bloom’s: Knowledge

 

28. _____ involves coordinating all planning efforts to create a consistent, coherent document.   a. Developing the project charter   b. Developing the preliminary project scope statement   c. Developing the project management plan   d. Developing the organizational process assets updates   ANSWER:   c RATIONALE:   Feedback: Developing the project management plan involves coordinating all planning efforts to create a consistent, coherent document—the project management plan. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.138 LEARNING OBJECTIVES:   INFO.SCHW.14.21 – LO: 4-1 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   What Is Project Integration Management? KEYWORDS:   Bloom’s: Knowledge

 

29. The outputs of the _____ process include change request status updates, project management plan updates, and project document updates.   a. initiating b. planning   c. executing d. monitoring and controlling   ANSWER:   d RATIONALE:   Feedback: The outputs of the monitoring and controlling process include change request status updates, project management plan updates, and project document updates. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.138 LEARNING OBJECTIVES:   INFO.SCHW.14.21 – LO: 4-1 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   What Is Project Integration Management? KEYWORDS:   Bloom’s: Knowledge

 

30. The first step in the planning process is _____.   a. to tie the information technology strategic plan to the organization’s overall strategic plan   b. to perform a business area analysis   c. to start defining potential IT projects in terms of their scope, benefits, and constraints   d. to choose which projects to do and assigning resources to work on them   ANSWER:   a RATIONALE:   Feedback: The first step in the planning process, starting at the top of the hierarchy, is to tie the IT strategic plan to the organization’s overall strategic plan. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.143 LEARNING OBJECTIVES:   INFO.SCHW.14.22 – LO: 4-2 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Strategic Planning And Project Selection KEYWORDS:   Bloom’s: Knowledge

 

31. The _____ stage of information technology planning outlines business processes that are central to achieving strategic goals and helps determine which ones could most benefit from information technology.   a. project planning b. business area analysis   c. resource allocation d. information technology strategy planning   ANSWER:   b RATIONALE:   Feedback: The business area analysis outlines business processes that are central to achieving strategic goals and helps determine which processes could most benefit from IT. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.143 LEARNING OBJECTIVES:   INFO.SCHW.14.22 – LO: 4-2 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Strategic Planning And Project Selection KEYWORDS:   Bloom’s: Knowledge

 

32. In the _____ stage of selecting information technology projects, organizations define project scope, benefits, and constraints.   a. project planning b. business area analysis   c. resource allocation d. information technology strategy planning   ANSWER:   a RATIONALE:   Feedback: In the project planning stage of selecting information technology projects, organizations define project scope, benefits, and constraints. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.143 LEARNING OBJECTIVES:   INFO.SCHW.14.22 – LO: 4-2 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Strategic Planning And Project Selection KEYWORDS:   Bloom’s: Knowledge

 

33. In the _____ stage of selecting information technology projects, organizations select information technology projects.   a. project planning b. business area analysis   c. resource allocation d. information technology strategy planning   ANSWER:   c RATIONALE:   Feedback: In the resource allocation stage of selecting information technology projects, organizations select information technology projects. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.144 LEARNING OBJECTIVES:   INFO.SCHW.14.22 – LO: 4-2 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Strategic Planning And Project Selection KEYWORDS:   Bloom’s: Knowledge

 

34. _____ are new requirements imposed by management, government, or some external influence.   a. Opportunities b. Charters   c. Problems d. Directives   ANSWER:   d RATIONALE:   Feedback: Directives are new requirements imposed by management, government, or some external influence. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.147 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Knowledge

 

35. _____ analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time.   a. Cost of capital b. Net present value   c. Cash flow d. Payback   ANSWER:   b RATIONALE:   Feedback: Net present value (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.148 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Knowledge

 

36. Benefits minus costs is known as the _____.   a. cost of capital b. cash flow   c. discount factor d. opportunity cost of capital   ANSWER:   b RATIONALE:   Feedback: Cash flow is the benefits minus costs or income minus expenses. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p. 148 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Knowledge

 

37. The first step in determining the NPV is to _____.   a. determine the estimated costs and benefits for the life of the project and the products it produces   b. determine the discount rate   c. calculate the net present value   d. determine the cash flow   ANSWER:   a RATIONALE:   Feedback: The first step in determining the NPV is to calculate the estimated costs and benefits for the life of the project and the products it creates. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.149 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Knowledge

 

38. Which of the following is true of return on investment or ROI?   a. It is always a percentage.   b. It is always a positive number.   c. It is the result of adding the project costs to the profits.   d. The lower it is, the better.   ANSWER:   a RATIONALE:   Feedback: The ROI is always a percentage. It can be positive or negative. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.151 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Comprehension

 

39. The _____ is the minimum acceptable rate of return on an investment.   a. capitalization rate b. internal rate of return   c. discount rate d. required rate of return   ANSWER:   d RATIONALE:   Feedback: The required rate of return is the minimum acceptable rate of return on an investment. POINTS:   1 DIFFICULTY:   Difficulty: Easy REFERENCES:   p.151 LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Knowledge

 

40. Payback occurs when:   a. the net cumulative benefits minus costs equal one.   b. the net cumulative benefits equal the net cumulative costs.   c. the net costs are lower than the cumulative benefits.   d. the cumulative benefits are double the cumulative costs.   ANSWER:   b RATIONALE:   Feedback: Payback occurs when the net cumulative benefits equal the net cumulative costs, or when the net cumulative benefits minus costs equal zero. POINTS:   1 DIFFICULTY:   Difficulty: Moderate REFERENCES:   p.151` LEARNING OBJECTIVES:   INFO.SCHW.14.23 – LO: 4-3 NATIONAL STANDARDS:   United States – BUSPROG: Technology TOPICS:   Methods for Selecting Projects KEYWORDS:   Bloom’s: Knowledge