Exam CTAL-TM topic 4 question 16 discussion

A software development company that sells an established capture-replay tool has decided to complement it with a test management tool. The capture-replay tool was developed over a number of years and is used by a large number of clients.
The test management tool will be developed by the same team that developed the capture-replay tool, using the same technology. The company test strategy mandates that structural testing is focussed at the component test level and dynamic non-functional testing is focussed at the acceptance test level.
In response to growing customer demand, it is proposed to develop the test management tool in an incremental manner. Each increment will be developed using the V life cycle model. The target platform is a PC in a local area network. The PC uses a proprietary relational database and communicates with a single PC which acts as a server.
The test management tool must interface with the company s capture replay tool. Over the first 12 months of the development period the following functionality will be developed for the tool (in two increments): basic requirements management, support for test case creation; support for test procedures, test scripts and test suites. The functionality to be included in later increments will be driven by customer demand: however they expect to provide an incident management system, a web front-end, and interfaces to other proprietary tools and database management systems.
Which of the following are valid reasons for adopting a different life cycle (from the V model), for increments after the first year? 2 credits
I: We do not have a clear understanding of the requirements from a customer perspective.
II: We see the risk of delivering requested functionality late as being higher than the risk of delivering a lower quality product.
III: We do not have a budget for additional regression testing which is needed to ensure that existing functionality is not compromised by future iterations.
IV: The company test strategy does not fit well within the V life cycle model.