ASQ CMQ/OE Q&A 2023

In selecting among different projects, the time value of money is considered for which of the following reasons? I. To perform a cost-benefit analysis II. To prioritize investments III. To predict cash flow IV. To reduce operating costs a) I, II, and III only b) I, II, III, and IV c) III and IV only d) I and II only - Answer- (D) The time value of money is considered to perform a cost-benefit analysis and prioritize investments. Q. The best tool for discovering relationships between two groups of ideas is a: I. Force field analysis II. Matrix diagram III. Prioritization matrix IV. Process Decision Program Chart (PDPC) - Answer- (II) A matrix diagram will effectively uncover relationships between two groups of ideas Which of the following is the biggest problem in cost-benefit analysis? I. It is easier to accurately estimate benefits than costs. II. It is easier to accurately estimate costs than benefits. III. It is an elaborate tool requiring extensive computer support. IV. It is too difficult to compute the time value of money. - Answer- (II) It is easier to accurately estimate costs than benefits Q. Which of the following is the definition for Internal Rate of Return (IRR)? I. A discounted cash flow technique for finding the present value of each future year's cash flow II. What remains from all money taken in after all expenses are paid