An organization is evaluating its 'Capital Adequacy'. If it has 500,000 in cash and a 'Burn Rate' of 50,000 per month, and a project takes 12 months to deliver value, what is the 'Financial Risk' level?https://go-math-science.com/computing/software-engineering/requirements-engineering/cbap-certification-practice-exams/cbap-practice-examp-2/an-organization-is-evaluating-its-capital-adequacy-if-it-has-500-000-in-cash-and-a-burn-rate-of-50-000-per-month-and-a-project-takes-12-months-to-deliver-value-what-is-the-financial-risk-levelhttps://go-math-science.com/@@site-logo/logo-new.png
volume_mute
An organization is evaluating its 'Capital Adequacy'. If it has 500,000 in cash and a 'Burn Rate' of 50,000 per month, and a project takes 12 months to deliver value, what is the 'Financial Risk' level?
publish date: 2026/03/09 07:15:46.148434 UTC
volume_mute
Correct Answer
High; the project will exceed available cash before value is realized
Explanation
12 months multiplied by 50,000 equals 600,000. The total cost exceeds the 500,000 cash reserves, meaning the project runs out of money 2 months before completion.
