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Question 33

Based on the financial analysis that’s been completed by the analytics team, the business analysis professional reminds the team that the most financially feasible option is the one with the:

    Correct Answer: A

    The most financially feasible option is the one with the highest ROI, lowest present value, highest NPV, and lowest payback period. A high ROI indicates a high return on investment, which is desirable. A low present value means a lower initial outlay, making it financially easier to manage. A high NPV signifies that the investment will yield a greater net value over time, and a low payback period means the investment will be recovered quickly, reducing financial risk. Therefore, option A is the correct choice.

Discussion
RabbitsfootOption: A

See BABOK 10.20 Financial analysis. I'm going with A, because: Highest ROI: This is good as it shows a high return relative to the investment. Maximize return. Lowest Present Value: This is good as it means less current expenditure. Minimizes current cost. Highest NPV: This is good as it indicates greater value added from the investment. Maximizes net value. Lowest Payback Period: This is good as it shows the investment will be recovered quickly. Minimizes time to recover investment.