Taken from Cert-CISSP
Related Exam: ISC2 Cert-CISSP SecurityCert: CISSP
Item Number: Cert-CISSP.4.3.29
Which statement correctly describes a Trojan horse?
Previous question and answer:
Taken from Cert-PMP4ED
Related Exam: PMI Cert-PMP4ED PMCert: Project Management Professional Fourth Edition
Item Number: Cert-PMP4ED.1.1.24
What is the LEAST accurate technique to use for cash flow analysis?
- Payback period is the least accurate cash flow analysis technique because it does not take into consideration the time value of money. Payback period is the amount of time that it will take to recoup the initial investment in the project. To calculate the payback period, you can sum the expected cash inflows and compare them to the initial project investment. This allows you to determine how long it will take for the initial investment and the total cash inflows to be equal.
Discounted cash flow is a more general term that refers to calculation of future cash flows adjusted for the time-value of money. Different methods, including the Yield method and the Net Present Value (NPV) method, can be used.
The internal rate of return (IRR) is simply the project's return expressed as an interest rate. IRR represents the discount rate when the present value of cash inflows is equal to the original investment, in other words the discount rate when NPV equals zero.
The NPV is a calculation that you can use to evaluate what a project is currently worth.
- Max Wideman Comparative Glossary of Project Management Terms v3.1 - Internal Rate of Return - http://maxwideman.com/pmglossary/PMG_I04.htm
Wikipedia, "Internal Rate of Return" - http://en.wikipedia.org/wiki/Internal_rate_of_return
Max Wideman Comparative Glossary of Project Management Terms v3.1 - Discounted Cash Flow - http://maxwideman.com/pmglossary/PMG_D04.htm
Max Wideman Comparative Glossary of Project Management Terms v3.1 - Pay-Back Period - http://maxwideman.com/pmglossary/PMG_P00.htm
Max Wideman Comparative Glossary of Project Management Terms v3.1 - Net Present Value - http://maxwideman.com/pmglossary/PMG_N00.htm