Question 1

Realignment describes:

Accepted Answer

A)  The change in a project portfolio with an addition of a new project. 
B)  The shifting of project resources from one to another. 
C)  The change in strategy for a firm. 
D)  The annual recasting of all project managers. 
A)  The change in a project portfolio with an addition of a new project. 
B)  The shifting of project resources from one to another. 
C)  The change in strategy for a firm. 
D)  The annual recasting of all project managers. A

Question 2

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 C

Question 3

A proactive project portfolio:

Accepted Answer

A)  Is as simple as moving from one project opportunity to another project opportunity. 
B)  Is an integrated family of projects with a common strategic goal. 
C)  Is a collection of projects under the umbrella of single project manager carrying the title of portfolio manager. 
D)  Is developed with respect to short-term operational concerns. 
A)  Is as simple as moving from one project opportunity to another project opportunity. 
B)  Is an integrated family of projects with a common strategic goal. 
C)  Is a collection of projects under the umbrella of single project manager carrying the title of portfolio manager. 
D)  Is developed with respect to short-term operational concerns. B

Question 4

Between projects A and B, project A will be considered a superior financial undertaking if it has:

Accepted Answer

A)  A shorter payback period than project B. 
B)  A lower average rate of return than project B. 
C)  A lower net present value than project B. 
D)  A longer payback period than project B. 
A)  A shorter payback period than project B. 
B)  A lower average rate of return than project B. 
C)  A lower net present value than project B. 
D)  A longer payback period than project B.

Question 5

Souder's project screening criterion that indicates an effective model must reflect organization objectives, including a firm's strategic goals and mission is called:

Accepted Answer

A)  Realism. 
B)  Capability. 
C)  Comparability. 
D)  Ease of use. 
A)  Realism. 
B)  Capability. 
C)  Comparability. 
D)  Ease of use.

Question 6

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 7

How can a payback period approach be used to evaluate potential projects?

Accepted Answer

The project payback period approach esti

Question 8

Evaluating projects in terms of their strategic fit with existing project lines or their ability to augment the current product family is known as:

Accepted Answer

A)  Balance. 
B)  An open criterion. 
C)  Weighted criterion. 
D)  Complementarity. 
A)  Balance. 
B)  An open criterion. 
C)  Weighted criterion. 
D)  Complementarity.

Question 9

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 10

Internal rate of return is preferable to net present value because IRR employs a weighted average cost of capital discount rate that reflects potential reinvestment.

Accepted Answer

A) True 
 B)False

Question 11

Inatech is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have the cash flows as shown and Inatech uses a required rate of return of 8%. Compute the internal rate of return for both projects to determine which is worth of funding.

Accepted Answer

Project A has an IRR of 1.85%. The net p

Question 12

What are the advantages and limitations of simple scoring models?

Accepted Answer

The simple scoring model has some useful

Question 13

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 14

Which statement regarding project selection and screening criteria is BEST?

Accepted Answer

A)  The most complete model in the world is still only a partial reflection of organization reality. 
B)  It is possible, given enough time and effort, to identify all relevant issues that play a role in project selection. 
C)  Decision models are either objective or subjective. 
D)  For many projects, more than 80% of the decision criteria are vital. 
A)  The most complete model in the world is still only a partial reflection of organization reality. 
B)  It is possible, given enough time and effort, to identify all relevant issues that play a role in project selection. 
C)  Decision models are either objective or subjective. 
D)  For many projects, more than 80% of the decision criteria are vital.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A project screening criterion that allows the company to compare long-term versus short-term projects, projects with different technologies, and projects with different commercial objectives is:

Accepted Answer

A)  Flexibility. 
B)  Ease of use. 
C)  Capability. 
D)  Realistic. 
A)  Flexibility. 
B)  Ease of use. 
C)  Capability. 
D)  Realistic.

Question 17

An internal operating issue in project screening and selection is:

Accepted Answer

A)  Expected return on investment. 
B)  Change in physical environment. 
C)  Patent protection. 
D)  The chance that the firm's goodwill will suffer due to the quality of the finished project. 
A)  Expected return on investment. 
B)  Change in physical environment. 
C)  Patent protection. 
D)  The chance that the firm's goodwill will suffer due to the quality of the finished project.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

An MBA redesign committee plans to spend a decade traveling the world to benchmark graduate programs at other universities. Regardless of the screening model being used, it will suffer from poor performance in the area of:

Accepted Answer

A)  flexibility. 
B)  Capability. 
C)  Comparability. 
D)  Cost. 
A)  flexibility. 
B)  Capability. 
C)  Comparability. 
D)  Cost.

Question 20

A balanced project portfolio may be interpreted to mean that a single portfolio contains both high and low risk, low growth and high growth, and risky and safe projects.

Accepted Answer

A) True 
 B)False

Realignment describes:

A proactive project portfolio:

Between projects A and B, project A will be considered a superior financial undertaking if it has:

Souder's project screening criterion that indicates an effective model must reflect organization objectives, including a firm's strategic goals and mission is called:

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

How can a payback period approach be used to evaluate potential projects?

Evaluating projects in terms of their strategic fit with existing project lines or their ability to augment the current product family is known as:

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.

Internal rate of return is preferable to net present value because IRR employs a weighted average cost of capital discount rate that reflects potential reinvestment.

What are the advantages and limitations of simple scoring models?

A checklist screening model does NOT consider:

Which statement regarding project selection and screening criteria is BEST?

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

A project screening criterion that allows the company to compare long-term versus short-term projects, projects with different technologies, and projects with different commercial objectives is:

An internal operating issue in project screening and selection is:

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

An MBA redesign committee plans to spend a decade traveling the world to benchmark graduate programs at other universities. Regardless of the screening model being used, it will suffer from poor performance in the area of:

A balanced project portfolio may be interpreted to mean that a single portfolio contains both high and low risk, low growth and high growth, and risky and safe projects.

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

Advanced Topics in Planning and Scheduling: Agile and Critical Chain

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters

Exam 3: Project Selection and Portfolio Management

Realignment describes:

A proactive project portfolio:

Between projects A and B, project A will be considered a superior financial undertaking if it has:

Souder's project screening criterion that indicates an effective model must reflect organization objectives, including a firm's strategic goals and mission is called:

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

How can a payback period approach be used to evaluate potential projects?

Evaluating projects in terms of their strategic fit with existing project lines or their ability to augment the current product family is known as:

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.

Internal rate of return is preferable to net present value because IRR employs a weighted average cost of capital discount rate that reflects potential reinvestment.

What are the advantages and limitations of simple scoring models?

A checklist screening model does NOT consider:

Which statement regarding project selection and screening criteria is BEST?

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

A project screening criterion that allows the company to compare long-term versus short-term projects, projects with different technologies, and projects with different commercial objectives is:

An internal operating issue in project screening and selection is:

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

An MBA redesign committee plans to spend a decade traveling the world to benchmark graduate programs at other universities. Regardless of the screening model being used, it will suffer from poor performance in the area of:

A balanced project portfolio may be interpreted to mean that a single portfolio contains both high and low risk, low growth and high growth, and risky and safe projects.

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

Advanced Topics in Planning and Scheduling: Agile and Critical Chain

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters