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A global financial system is being delivered by the program team to allow access from anywhere in the world.
Following a new cross-border regulation applying to privacy of local banking data accessed from abroad, the CEO of the bank requests that an external audit be conducted to validate compliance with this new regulation.
This event, which was not anticipated at this phase of the program, will generate additional work for the program team. This effort is not included in the current program roadmap and benefits delivery plan.
What immediate actions should the program manager take?
A. Accept the risk of the audit and continue the program as planned
B. De-scope the capabilities of the system to not allow access from abroad
C. Negotiate with the CEO in an attempt to avoid the audit
D. Assess the impact of the audit and potential remediation on the program
Answer: D

A project with normal (or conventional) cash flows has a single IRR of 10%. If a project's hurdle rate is 8%, the project NPV:
A. could be all of these answers.
B. is negative.
C. equals zero.
D. is positive.
Answer: D
"Normal cash flows" implies that there is an up front cost when the project is set up but all cash flows after that are cash inflows. For normal cash flows, the NPV is positive for discount rates lower than the IRR and negative for discount rates higher than the IRR. Since the project's hurdle rate is less than the IRR, the project's NPV is positive. Note: if there are cash outflows after the project is put into operation, one can get multiple IRRs.

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