Week 2 Questions

Week2 Questions

Week2 Questions

1.APM Framework and PMBOK Framework

TheAgile Project Management (APM) framework discusses the whole projectlifecycle. APM operate in five major stages: envision, speculate,explore, adapt, and close. The project begins at the vision of theproduct and ends at the product delivery stage. The ProjectManagement Body of Knowledge (PMBOK) Framework indicates five projectprocesses: initiation, planning, execution, projectcontrolling/monitoring, and project closing (Meier, 2012).

2.Suitable Project Management Approach

TheAPM framework is appropriate for projects that are unclear or highlyflexible for example, the development of superior satellite weaponsystem. This is because it has the stages of speculation,exploration, and adaptation. Speculation indicates analysis of thelikely project results or outcomes (Chandana, 2012). Explorationentails testing to determining the most effective developmentapproach. The adaptation stage involves the implementation of themost effective project development technique.

3.Value of Annuity and Lump Sum Payment

Lumpsum payment and annuity generate different financial returns. Longterm financial investments have higher returns than upfront payments.The US income tax department taxes lump sum payments at a higher ratethan annuity. The value of the lump sum payment, therefore, reducesby a higher margin after taxation. Lump sum payments attractstaxation rate for the maximum income tax level. Money invested inannuity attracts interest that is compounded over the years. Thevalue of annuity investment hence improves over the years (BusinessInsider, 2016).

4.Effectiveness of the Cash Flow Budget

Cashflow budget is in some cases more important than the comprehensivebudget. Cash flow budget is effective when close monitoring of incomeand expenditure is required. Cash flow budget shows regular expensesfor the business, and also the sources and values of income such assales. Cash flow budget is also useful for financing generalorganizational expenses such as energy costs, wages, stationery, andmiscellaneous costs (Andy, 2012).

References

Andy,S. (2012). The Cash Budget and Other Specialized Budgets. Retrievedfrom http://2012books.lardbucket.org/books/individual-finance/s09-03-the-cash-budget-and-other-spec.html

BusinessInsider. (2016). Lump Sum or the Annuity: Here`s Which One to ChooseIf You Win The Lottery. Retrieved fromhttp://www.businessinsider.com/should-you-take-the-annuity-or-the-lump-sum-if-you-win-the-lottery-2013-9

Chandana.(2012). Agile Certification Training: Agile Project ManagementFramework. Retrieved fromhttp://www.simplilearn.com/apm-framework-article/all-resources

Meier,J. (2012). Project Management Body of Knowledge (PMBOK) Framework.Retrieved fromhttps://blogs.msdn.microsoft.com/jmeier/2012/01/29/project-management-body-of-knowledge-pmbok-framework/