Question 1

An options model could be used when financial criteria would change significantly over time.

Accepted Answer

A) True 
 B)False  True

Question 2

The present value of money is lower the further out in the future I expect to spend it.

Accepted Answer

A) True 
 B)False  False

Question 3

The profile model plots a graph on a(n):

Accepted Answer

A) perception-reality pair of axes. 
B) risk-return pair of axes. 
C) efficiency-effectiveness pair of axes. 
D) Saxon-Norman pair of axes. 
A) perception-reality pair of axes. 
B) risk-return pair of axes. 
C) efficiency-effectiveness pair of axes. 
D) Saxon-Norman pair of axes. B

Question 4

Which of these statements about valuation models is NOT correct?

Accepted Answer

A) NPV employs a weighted average cost of capital discount rate that reflects potential reinvestment. 
B) IRR and NPV calculations typically make the same investment recommendations only when the projects are independent of each other. 
C) If cash flows are not normal,IRR may arrive at multiple solutions. 
D) IRR is a more robust determinant of project viability than NPV. 
A) NPV employs a weighted average cost of capital discount rate that reflects potential reinvestment. 
B) IRR and NPV calculations typically make the same investment recommendations only when the projects are independent of each other. 
C) If cash flows are not normal,IRR may arrive at multiple solutions. 
D) IRR is a more robust determinant of project viability than NPV.

Question 5

An MBA redesign committee spends the better part of a decade traveling the Caribbean to benchmark graduate programs at other universities.Whatever screening model is being used suffers from poor performance on:

Accepted Answer

A) realism. 
B) capability. 
C) ease of use. 
D) cost. 
A) realism. 
B) capability. 
C) ease of use. 
D) cost.

Question 6

Describe any four types of risk that projects may hold.

Accepted Answer

Risk factors reflect elements of unpredi

Question 7

A checklist screening model does not consider:

Accepted Answer

A) whether one criterion is more important than another. 
B) governmental or stakeholder interference. 
C) product durability and future market potential of the product line. 
D) the riskiness of the new venture. 
A) whether one criterion is more important than another. 
B) governmental or stakeholder interference. 
C) product durability and future market potential of the product line. 
D) the riskiness of the new venture.

Question 8

Regardless of which selection method a firm uses,it should always:

Accepted Answer

A) be able to predict how much revenue will be returned to the firm each year. 
B) know which project will ultimately succeed and which ones will fail. 
C) be objective in their selection method. 
D) use a weighted scoring technique. 
A) be able to predict how much revenue will be returned to the firm each year. 
B) know which project will ultimately succeed and which ones will fail. 
C) be objective in their selection method. 
D) use a weighted scoring technique.

Question 9

Because projects managed under a project portfolio management scheme may be independent of each other,it is not necessary to consider resource use when deciding to pursue any single project.

Accepted Answer

A) True 
 B)False

Question 10

Options models are used to assist in project selection decisions:

Accepted Answer

A) when IRR calculations are favorable but NPV calculations are unfavorable. 
B) when a company may not recover the money it invests in a project. 
C) when NPV calculations are favorable but IRR calculations are unfavorable. 
D) when a company is guaranteed to recover the money it invests in a project. 
A) when IRR calculations are favorable but NPV calculations are unfavorable. 
B) when a company may not recover the money it invests in a project. 
C) when NPV calculations are favorable but IRR calculations are unfavorable. 
D) when a company is guaranteed to recover the money it invests in a project.

Question 11

A project manager is using the payback method to make the final decision on which project to undertake.The company has a 10% required rate of return and expects a 4% rate of inflation for the following five years.What is the discounted payback of a project that has cash flows as shown in the table?

Accepted Answer

A) 3.4 years 
B) 2.6 years 
C) 5.0 years 
D) 4.2 years 
A) 3.4 years 
B) 2.6 years 
C) 5.0 years 
D) 4.2 years

Question 12

A project manager is using a simple scoring model to decide which of four projects is best,given the company's limited resources.The criteria,importance weights,and scores for each are shown in the table.Which project should be chosen?

Accepted Answer

A) Project Greenlight 
B) Project Runway 
C) Project X 
D) Project Ilevomit 
A) Project Greenlight 
B) Project Runway 
C) Project X 
D) Project Ilevomit

Question 13

If a model can be applied successfully by people in all areas and levels of an organization,it is said to possess the trait of:

Accepted Answer

A) capability. 
B) ease of use. 
C) flexibility. 
D) realism. 
A) capability. 
B) ease of use. 
C) flexibility. 
D) realism.

Question 14

The first step in the Analytical Hierarchy Process:

Accepted Answer

A) requires supporting requirements to be combined into Level II challenges. 
B) is analyzing the process you intend to improve before undertaking any improvement project. 
C) requires Saatyfication of the team members. 
D) consists of constructing a hierarchy of criteria and subcriteria. 
A) requires supporting requirements to be combined into Level II challenges. 
B) is analyzing the process you intend to improve before undertaking any improvement project. 
C) requires Saatyfication of the team members. 
D) consists of constructing a hierarchy of criteria and subcriteria.

Question 15

What are the advantages and limitations of simple scoring models?

Accepted Answer

The simple scoring model has some useful

Question 16

Which of these statements about internal rate of return analysis is best?

Accepted Answer

A) If the IRR is less than the company's required rate of return,the project is worth funding. 
B) Projects having lower IRR are generally superior to those having higher IRR. 
C) IRR and NPV calculations always make the same investment recommendations. 
D) If net outflows follow a period of net inflows,IRR may give conflicting results. 
A) If the IRR is less than the company's required rate of return,the project is worth funding. 
B) Projects having lower IRR are generally superior to those having higher IRR. 
C) IRR and NPV calculations always make the same investment recommendations. 
D) If net outflows follow a period of net inflows,IRR may give conflicting results.

Question 17

An expert's opinion on an issue may be subjective but very accurate.

Accepted Answer

A) True 
 B)False

Question 18

A simplified scoring model is used to determine that project Cow has a score of 38 and project GiGi has a score of 30.Project Cow is therefore 26.7% better than project GiGi.

Accepted Answer

A) True 
 B)False

Question 19

Financial models are all predicated on the ________ principle.

Accepted Answer

The answer of Financial models are all predicated on the...

Question 20

In project management,the ________ is the set of project portfolio options that offers either a maximum return for every given level of risk or the minimum risk for every level of return.

Accepted Answer

The answer of In project management,the ________ is the set...

An options model could be used when financial criteria would change significantly over time.

The present value of money is lower the further out in the future I expect to spend it.

The profile model plots a graph on a(n):

Which of these statements about valuation models is NOT correct?

An MBA redesign committee spends the better part of a decade traveling the Caribbean to benchmark graduate programs at other universities.Whatever screening model is being used suffers from poor performance on:

Describe any four types of risk that projects may hold.

A checklist screening model does not consider:

Regardless of which selection method a firm uses,it should always:

Because projects managed under a project portfolio management scheme may be independent of each other,it is not necessary to consider resource use when deciding to pursue any single project.

Options models are used to assist in project selection decisions:

A project manager is using the payback method to make the final decision on which project to undertake.The company has a 10% required rate of return and expects a 4% rate of inflation for the following five years.What is the discounted payback of a project that has cash flows as shown in the table?

A project manager is using a simple scoring model to decide which of four projects is best,given the company's limited resources.The criteria,importance weights,and scores for each are shown in the table.Which project should be chosen?

If a model can be applied successfully by people in all areas and levels of an organization,it is said to possess the trait of:

The first step in the Analytical Hierarchy Process:

What are the advantages and limitations of simple scoring models?

Which of these statements about internal rate of return analysis is best?

An expert's opinion on an issue may be subjective but very accurate.

A simplified scoring model is used to determine that project Cow has a score of 38 and project GiGi has a score of 30.Project Cow is therefore 26.7% better than project GiGi.

Financial models are all predicated on the ________ principle.

In project management,the ________ is the set of project portfolio options that offers either a maximum return for every given level of risk or the minimum risk for every level of return.

Introduction: Why Project Management

The Organizational Context: Strategy, structure, and Culture

Leadership and the Project Manager

Scope Management

Project Team Building, conflict, and Negotiation

Risk Management

Cost Estimation and Budgeting

Project Scheduling: Networks, duration Estimation, and Critical Path

Project Scheduling: Lagging, crashing, and Activity Networks

Critical Chain Project Scheduling

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters

Exam 3: Project Selection and Portfolio Management

An options model could be used when financial criteria would change significantly over time.

The present value of money is lower the further out in the future I expect to spend it.

The profile model plots a graph on a(n):

Which of these statements about valuation models is NOT correct?

An MBA redesign committee spends the better part of a decade traveling the Caribbean to benchmark graduate programs at other universities.Whatever screening model is being used suffers from poor performance on:

Describe any four types of risk that projects may hold.

A checklist screening model does not consider:

Regardless of which selection method a firm uses,it should always:

Because projects managed under a project portfolio management scheme may be independent of each other,it is not necessary to consider resource use when deciding to pursue any single project.

Options models are used to assist in project selection decisions:

A project manager is using the payback method to make the final decision on which project to undertake.The company has a 10% required rate of return and expects a 4% rate of inflation for the following five years.What is the discounted payback of a project that has cash flows as shown in the table?

A project manager is using a simple scoring model to decide which of four projects is best,given the company's limited resources.The criteria,importance weights,and scores for each are shown in the table.Which project should be chosen?

If a model can be applied successfully by people in all areas and levels of an organization,it is said to possess the trait of:

The first step in the Analytical Hierarchy Process:

What are the advantages and limitations of simple scoring models?

Which of these statements about internal rate of return analysis is best?

An expert's opinion on an issue may be subjective but very accurate.

A simplified scoring model is used to determine that project Cow has a score of 38 and project GiGi has a score of 30.Project Cow is therefore 26.7% better than project GiGi.

Financial models are all predicated on the ________ principle.

In project management,the ________ is the set of project portfolio options that offers either a maximum return for every given level of risk or the minimum risk for every level of return.

Introduction: Why Project Management

The Organizational Context: Strategy, structure, and Culture

Leadership and the Project Manager

Scope Management

Project Team Building, conflict, and Negotiation

Risk Management

Cost Estimation and Budgeting

Project Scheduling: Networks, duration Estimation, and Critical Path

Project Scheduling: Lagging, crashing, and Activity Networks

Critical Chain Project Scheduling

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters