Exam 2: Strategic Management and Project Selection

The __________ is the interest rate set by an organization as the minimum acceptable rate of return for a project.

Project proposals should include all of the following, EXCEPT __________.

A project selected using the sacred cow model will be maintained until successfully completed or until __________.

When the decision maker's information is not complete, he/she will have to make a decision under conditions of __________.

The sophistication and experience of an organization in managing multiple projects is called ________.

Which of the following demonstrates the quality of flexibility required of a project selection model?

Which of the following is NOT a type of nonnumeric model?

For a project selected using nonnumeric models, identify the true statement regarding relative priorities for project selection.

Contrast the real options selection approach with profitability models.

The __________ is also called the benefit-cost ratio.

__________ is the process of evaluating individual projects or groups of projects, and then choosing to implement some set of them so that the objectives of the parent organization will be achieved.

The set of documents submitted when evaluating a project is referred to as the __________.

Project Boulder has a payback period of 2.4 years, an NPV of $10,000, and a profitability index of 1.10. Project Flintstone has a payback period of 3.0 years, an NPV of $10,000 and a profitability index of 1.05. If only one project can be executed, which project should be selected? Explain your reasoning.

The Astebro study (2004)of R&D projects found that all the characteristics below were excellent predictors of project commercial success, EXCEPT __________.

Project Typhoon has a net present value of $10,000 and a profitability index of 1.01. Project Cyclone has a net present value of $10,000 and a profitability index of 1.10. If only one project could be undertaken, the organization should select __________.

Real options seek to reduce which of the following risks in projects?

If the initial project investment is $50,000 and the average net cash flow is $10,000 per year into the foreseeable future, the payback period is __________.

Which of the following demonstrates the quality of realism required of a project selection model?

The mastery of the skills required to manage projects competently is referred to in the literature as __________.