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SAVE International Value Methodology Associate Sample Questions:

1. Which of the following defines the nominal rate of increase in the value of money over time, after subtracting for inflation?

A) Simple Payback (or Breakeven Point)
B) Present Worth (or Net Present Value)
C) Discount Rate
D) Return on Investment (ROI)

2. What is the term for the vertical demarcations on the left and right of a FAST diagram?

A) Function Logic Lines
B) Scope Lines
C) When Direction Lines
D) Subject Lines

3. The unique aspect of the value methodology is its application to anything that:

A) performs a function.
B) includes an activity.
C) is a subject of study.
D) is goal-oriented.

4. When transforming the VM study subject's cost information, the potential for achieving major savings is:

A) Enhanced when outputs are included in calculations
B) Greatest during the early phases of the project lifecycle
C) Increased when the VM proposals improve performance
D) Improved when costs are aligned with scope increases

5. Which of the following is most relevant to the Evaluation Phase?

A) Weighting
B) Cost Model
C) Constraints
D) Return on Investment

Solutions: