Financial Parameter
Internal Rate of Return (IRR) is used to express the return on project in % terms when
comparing two different cash flow streams.
ROI best describe how much money you hope the project will return
NPV is most information necessary to make a final decision
ROTI is computed using a scale of values, whole numbers, between 0 and 4. Participants are
asked to give a value between 0 and 4 based on what their opinion is of whether a meeting
provided decisions or actions that moved the group forward, or whether information sharing
or problem solving was effective. This is a very subjective evaluation and scoring method
where ROI is more objectively determined
Return on Time Invested (ROTI) is used to measure the effectiveness of the retrospective
meetings from the team members' perspective.
Q: A sponsor wants to evaluate a proposed three-year project against two proposed one-
year projects.Which financial metric would be most helpful?
A. NPV
B. ROI
c. MMF
D. Velocity
The correct choice is NPV (net present value) because it converts multiyear returns on
investment to a value in today's terms. It is the best option from the choices presented for
evaluating projects with different durations. Also, MMF and velocity are not methods for
assessing the value of a proposed project.
Q:The sponsor wants to use earned value metrics to measure the team’s progress. You
remind her that:
A. The team prefers to use information radiators.
B. The project plan isn't finalized yet.
C. We need to establish a stable velocity fust.
D. Earned value metrics won't reveal whether the product is meeting the users' needs
This question requires you to understand the drawbacks of using earned value me trics
on an agile project. 1hree of the questions are distractors that aren't related to EVM. EVM
charts can be displayed as an information radiator, so that is irrelevant. Agile plans aren't
"finalized" un til the project is clone, so that can't be right, either. A stable velocity isn't
necessary for EVM to work weil. The correct answer is that earned value metrics don't reveal
whether the deliverable being built is a good product that will meet the users' needs.
Q: - soft development company had to make a number of adjustments in how financial are
captured in order to report on agile projects. The Chief Financial Officer (CFO) wants to
make sure that the same set of financial metrics are used across all projects before, during,
and after the project in order to track the project benefit realization. Internal Rate of
Internal Rate of Return (IRR) is used to express the return on project in % terms when
comparing two different cash flow streams.
ROI best describe how much money you hope the project will return
NPV is most information necessary to make a final decision
ROTI is computed using a scale of values, whole numbers, between 0 and 4. Participants are
asked to give a value between 0 and 4 based on what their opinion is of whether a meeting
provided decisions or actions that moved the group forward, or whether information sharing
or problem solving was effective. This is a very subjective evaluation and scoring method
where ROI is more objectively determined
Return on Time Invested (ROTI) is used to measure the effectiveness of the retrospective
meetings from the team members' perspective.
Q: A sponsor wants to evaluate a proposed three-year project against two proposed one-
year projects.Which financial metric would be most helpful?
A. NPV
B. ROI
c. MMF
D. Velocity
The correct choice is NPV (net present value) because it converts multiyear returns on
investment to a value in today's terms. It is the best option from the choices presented for
evaluating projects with different durations. Also, MMF and velocity are not methods for
assessing the value of a proposed project.
Q:The sponsor wants to use earned value metrics to measure the team’s progress. You
remind her that:
A. The team prefers to use information radiators.
B. The project plan isn't finalized yet.
C. We need to establish a stable velocity fust.
D. Earned value metrics won't reveal whether the product is meeting the users' needs
This question requires you to understand the drawbacks of using earned value me trics
on an agile project. 1hree of the questions are distractors that aren't related to EVM. EVM
charts can be displayed as an information radiator, so that is irrelevant. Agile plans aren't
"finalized" un til the project is clone, so that can't be right, either. A stable velocity isn't
necessary for EVM to work weil. The correct answer is that earned value metrics don't reveal
whether the deliverable being built is a good product that will meet the users' needs.
Q: - soft development company had to make a number of adjustments in how financial are
captured in order to report on agile projects. The Chief Financial Officer (CFO) wants to
make sure that the same set of financial metrics are used across all projects before, during,
and after the project in order to track the project benefit realization. Internal Rate of
