The correct answer is effectiveness, as opposed to efficiency. Techniques of leadership focus on effectiveness; efficiency is a focus of management techniques. The Agile methodology values leadership over management. The other responses are incorrect because they don’t represent “people over processes” in the best way. In addition, logic over feelings is not an agile approach, nor is command. Velocity represents the average points done in an iteration; it’s not a part of agile values.

The correct answer is that the vision of the project should be discussed throughout the project; the project’s vision cannot be overcommunicated. The other choices are incorrect because they are limited, and not the best choice here. The vision of the project should be discussed often.

An individual readily admitting to a mistake he made in the project is the correct answer, and best displays a practice of agile leadership. Honestly admitting a mistake is an agile leadership practice. The other responses are incorrect because it’s not good practice to have a pre-standup meeting; the upkeep of a project plan is part of agile; to be transparent, estimates adjusted from the original should be provided only with an explanation as to why the buffer is needed.

The correct answer is that risk decreases more quickly than in traditional development. Over the course of an agile project, risk decreases rather steadily. The other responses are incorrect because until a project is finished, traditional projects experience little decrease in risk; the achievement of business value should occur as early in the project as possible; agile projects should demonstrate visibility and adaptability from start to finish; value should show a steady increase with increments.

The correct answer is to deliver an MVP (minimum viable product) as quickly as possible. To prevent competitors from taking market share by getting their product out first, it’s most important to get an MVP out as soon as possible. The other responses are incorrect because there’s no need for additional risk analysis; it’s not an agile practice to produce a fully featured product that can take longer and cost market share; in a competitive situation, further risk logging is not an immediate focus.

The correct answer is to calculate the NPV of both projects and choose the one that is higher. Regardless of the length of the project, NPV allows the value to be calculated in today’s terms; it’s the best choice for project value comparison. The other responses are incorrect because analysis avoidance won’t determine the greatest value; it’s not an agile best practice to have a company’s board vote; the calculation of future revenue doesn’t show a project’s value at a single point in time, which includes cost deductions and money’s time value, which is part of NPV.

ROI is the calculation of this ratio and is the correct answer. The other responses are incorrect because NPV is a total dollar amount that’s also calculated at a point in time, including ROI; it’s not a ratio. Net investment value and return on income are not accurate terms.

The correct answer is that an ROI is expected. A positive ROI of $50,000 indicates an expected return. The other responses are incorrect. A positive ROI doesn’t guarantee a project should be launched, because other projects may have greater benefits; ROI and NPV can’t be directly compared; a positive ROI means potential costs are expected to be less, not more, than the project benefits.

The correct answer is that IRR (Internal Rate of Revenue) is most like the concept of interest earned on a savings account. The other choices are incorrect because IRR is defined as the discount rate at which project revenue equals project costs; the other choices don’t define IRR. In addition, IRR can’t be directly compared to NPV because NPV is not a ratio, it’s a total value at a point in time.

The correct answer is the Earned Value Management (EVM) approach. The definition of EVM is that it’s a comparison of the project’s cost to another metric, such as time. The other answers are incorrect because they aren’t accurate names for the approach Randy is using. Agile Project Accounting is a set of financial principles that are irrelevant; Earned Value Ratio is also irrelevant. The Internal Rate of Return (IRR) is defined as the discount rate where project revenues equal project costs.