CBAP Practice Exam #5

A series of 30 high-difficulty, scenario-based questions focusing on the Strategy Analysis knowledge area as defined in the BABOK® Guide v3.

download Export
search_insights Statistics
stylus_note White Board
Quran
calculate Calculator
dictionary Dictionary
fullscreen Full Screen

QUESTION OF
Views #: 2
Questions #: 2
Time: 60 minutes
Pass Score: 80.0%
Style
Mode

A multinational corporation is facing a 15% decline in market share due to disruptive fintech competitors. The CTO suggests immediate migration to a cloud-native architecture. As a Senior Business Analyst, you are conducting a 'Define Future State' task. Which of the following should be your primary focus to ensure the strategy is sound?

1 pts
volume_mute
note_alt Add notes
flag Flag

Correct Answer

Explanation

During a 'Analyze Current State' exercise, you discover that the existing legacy system has a technical debt that costs \($200,000\) annually in maintenance. A new solution costs \($800,000\) to implement and will reduce maintenance to \($40,000\) per year. However, the organization's internal rate of return (IRR) is 12%. What is the most critical non-financial factor you must assess before recommending this change strategy?

1 pts
volume_mute
note_alt Add notes
flag Flag

Correct Answer

Explanation