Question 1

What is the time value of money principle and how does it apply to project selection?

Accepted Answer

The time value of money principle sugges

Question 2

A simple scoring model for project evaluation requires:

Accepted Answer

A) Importance weights from 1 to 10 assigned to each criterion. 
B) Score values assigned to each criterion in terms of its rating. 
C) A division of weights by scores to arrive at a standardized score for each criterion. 
D) A summation for each criterion to achieve an overall criterion score. 
A) Importance weights from 1 to 10 assigned to each criterion. 
B) Score values assigned to each criterion in terms of its rating. 
C) A division of weights by scores to arrive at a standardized score for each criterion. 
D) A summation for each criterion to achieve an overall criterion score.

Question 3

In the project portfolio selection process,the preprocess phase is likely to involve:

Accepted Answer

A) Determining selection methodologies and guiding strategic principles for project evaluation. 
B) Prescreening to ensure projects fit broader strategic goals. 
C) Considering interactions among various portfolio projects and interdependencies. 
D) Analyzing and evaluating current projects that have passed a critical review gate. 
A) Determining selection methodologies and guiding strategic principles for project evaluation. 
B) Prescreening to ensure projects fit broader strategic goals. 
C) Considering interactions among various portfolio projects and interdependencies. 
D) Analyzing and evaluating current projects that have passed a critical review gate.

Question 4

Describe or define any four important attributes for screening models used to evaluate projects.

Accepted Answer

Souder identifies five important issues

Question 5

A writer estimates it will take three months to generate spiffy documents to accompany a seminal work in operations management.He grossly underestimates the time required and misses his deadline by two months.This estimate was:

Accepted Answer

A) Objective and accurate. 
B) Subjective and accurate. 
C) Objective and inaccurate. 
D) Subjective and inaccurate. 
A) Objective and accurate. 
B) Subjective and accurate. 
C) Objective and inaccurate. 
D) Subjective and inaccurate.

Question 6

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

Question 7

The Analytical Hierarchy Process is used to decide among three projects that we'll call A,B,and C.The total score for project A is .650,for project B is .514,and for project C is .321.Which of the following statements is BEST?

Accepted Answer

A) Project A is twice as good as project C. 
B) The analysis must be incorrect because the total scores should sum to 1.00. 
C) The analysis must be incorrect because there are two total scores that exceed 0.50. 
D) The analysis must be incorrect because project C's total score is odd. 
A) Project A is twice as good as project C. 
B) The analysis must be incorrect because the total scores should sum to 1.00. 
C) The analysis must be incorrect because there are two total scores that exceed 0.50. 
D) The analysis must be incorrect because project C's total score is odd.

Question 8

The simplest method of project screening and selection is developing a list of criteria that pertain to the choice of projects and then applying them to alternatives.

Accepted Answer

A) True 
 B)False

Question 9

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 10

The checklist model of project screening has a mechanism to accommodate the differential importance of relevant criteria.

Accepted Answer

A) True 
 B)False

Question 11

Net present value is being used to break the tie among four otherwise equal projects.If the interest rate is 4%,which of these anticipated four-year flows would yield the greatest net present value?

Accepted Answer

A) $10,000 in year 1;$11,000 in year 2;$12,000 in year 3;and $13,000 in year 4 
B) $13,000 in year 1;$12,000 in year 2;$11,000 in year 3;and $10,000 in year 4 
C) $10,000 in year 1;$10,000 in year 2;$13,000 in year 3;and $13,000 in year 4 
D) $11,000 in year 1;$11,000 in year 2;$12,000 in year 3;and $12,000 in year 4 
A) $10,000 in year 1;$11,000 in year 2;$12,000 in year 3;and $13,000 in year 4 
B) $13,000 in year 1;$12,000 in year 2;$11,000 in year 3;and $10,000 in year 4 
C) $10,000 in year 1;$10,000 in year 2;$13,000 in year 3;and $13,000 in year 4 
D) $11,000 in year 1;$11,000 in year 2;$12,000 in year 3;and $12,000 in year 4

Question 12

The Analytic Hierarchy Process is being employed in a project selection decision.One major criteria,cost,receives a weighting value of 40%,which is split into short term (50%),intermediate term (30%),and long term (20%).Which of these statements is BEST?

Accepted Answer

A) Short term,intermediate term,and long term must receive overall weightings that total 100%. 
B) There must be at least one other major criteria that has 40% weighting. 
C) Intermediate-term cost receives a weighting of 12%. 
D) Long-term cost receives an overall weighting of 80%. 
A) Short term,intermediate term,and long term must receive overall weightings that total 100%. 
B) There must be at least one other major criteria that has 40% weighting. 
C) Intermediate-term cost receives a weighting of 12%. 
D) Long-term cost receives an overall weighting of 80%.

Question 13

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 10% and an inflation rate of 4%.Compute the payback in years and the net present value for both projects and offer advice as to the best course of action.
 $$\begin{array} { | l | l | l |} 
\hline \text { Year } & \mathbf { A } & \mathbf { B } \
\hline 0 & - \$ 250,000 & -\$ 400,000 \
\hline 1 & \$ 75,000 & \$ 125,000 \
\hline 2 & \$ 155,000 & \$ 230,000 \
\hline 3 & \$ 200,000 & \$ 288,000 \
\hline 4 & \$ 175,000 & \$ 265,000 \
\hline 5 & \$ 160,000 & \$ 225,000 \
\hline
\end{array}$$

Accepted Answer

The NPV for project A is $256,764 and th

Question 14

Which statement about the Analytical Hierarchy Process is FALSE?

Accepted Answer

A) AHP scores are significant. 
B) AHP can be used to capture choice options that do not yield positive outcomes. 
C) AHP can improve the process of developing project proposals. 
D) AHP groups subcriteria that share the weight of a common higher-level criterion. 
A) AHP scores are significant. 
B) AHP can be used to capture choice options that do not yield positive outcomes. 
C) AHP can improve the process of developing project proposals. 
D) AHP groups subcriteria that share the weight of a common higher-level criterion.

Question 15

What criteria might be employed to prioritize projects in a project portfolio? Choose any example project from recent business news and deduce which criteria were most important to the company in question.

Accepted Answer

The criteria that are commonly used to p

Question 16

What are the advantages and limitations of simple scoring models?

Accepted Answer

The simple scoring model has some useful

Question 17

A project manager is using the internal rate of return method to make the final decision on which project to undertake.Which of these four projects has the highest internal rate of return?

Accepted Answer

A) $100,000 initial outlay with $10,000 cash inflows during the first two years,$20,000 during the third and fourth years,and $30,000 during the fifth year 
B) $100,000 initial outlay with a $5,000 cash inflow during the first year,$15,000 cash inflow during the second year,and $25,000 cash inflows during years three through five 
C) $75,000 initial outlay with a $5,000 cash inflow during the first year,increasing by $5,000 per year through the fifth year 
D) $50,000 initial outlay with $5,000 cash inflows during the first two years,$15,000 during the third and fourth years,and $20,000 during the fifth year 
A) $100,000 initial outlay with $10,000 cash inflows during the first two years,$20,000 during the third and fourth years,and $30,000 during the fifth year 
B) $100,000 initial outlay with a $5,000 cash inflow during the first year,$15,000 cash inflow during the second year,and $25,000 cash inflows during years three through five 
C) $75,000 initial outlay with a $5,000 cash inflow during the first year,increasing by $5,000 per year through the fifth year 
D) $50,000 initial outlay with $5,000 cash inflows during the first two years,$15,000 during the third and fourth years,and $20,000 during the fifth year

Question 18

A simplified scoring model addresses all the weakness of a checklist model for project screening.

Accepted Answer

A) True 
 B)False

Question 19

Every decision model contains both objective and subjective factors.

Accepted Answer

A) True 
 B)False

Question 20

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.

What is the time value of money principle and how does it apply to project selection?

A simple scoring model for project evaluation requires:

In the project portfolio selection process,the preprocess phase is likely to involve:

Describe or define any four important attributes for screening models used to evaluate projects.

A writer estimates it will take three months to generate spiffy documents to accompany a seminal work in operations management.He grossly underestimates the time required and misses his deadline by two months.This estimate was:

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.

The Analytical Hierarchy Process is used to decide among three projects that we'll call A,B,and C.The total score for project A is .650,for project B is .514,and for project C is .321.Which of the following statements is BEST?

The simplest method of project screening and selection is developing a list of criteria that pertain to the choice of projects and then applying them to alternatives.

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

The checklist model of project screening has a mechanism to accommodate the differential importance of relevant criteria.

Net present value is being used to break the tie among four otherwise equal projects.If the interest rate is 4%,which of these anticipated four-year flows would yield the greatest net present value?

The Analytic Hierarchy Process is being employed in a project selection decision.One major criteria,cost,receives a weighting value of 40%,which is split into short term (50%),intermediate term (30%),and long term (20%).Which of these statements is BEST?

Which statement about the Analytical Hierarchy Process is FALSE?

What criteria might be employed to prioritize projects in a project portfolio? Choose any example project from recent business news and deduce which criteria were most important to the company in question.

What are the advantages and limitations of simple scoring models?

A project manager is using the internal rate of return method to make the final decision on which project to undertake.Which of these four projects has the highest internal rate of return?

A simplified scoring model addresses all the weakness of a checklist model for project screening.

Every decision model contains both objective and subjective factors.

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

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

What is the time value of money principle and how does it apply to project selection?

A simple scoring model for project evaluation requires:

In the project portfolio selection process,the preprocess phase is likely to involve:

Describe or define any four important attributes for screening models used to evaluate projects.

A writer estimates it will take three months to generate spiffy documents to accompany a seminal work in operations management.He grossly underestimates the time required and misses his deadline by two months.This estimate was:

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.

The Analytical Hierarchy Process is used to decide among three projects that we'll call A,B,and C.The total score for project A is .650,for project B is .514,and for project C is .321.Which of the following statements is BEST?

The simplest method of project screening and selection is developing a list of criteria that pertain to the choice of projects and then applying them to alternatives.

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

The checklist model of project screening has a mechanism to accommodate the differential importance of relevant criteria.

Net present value is being used to break the tie among four otherwise equal projects.If the interest rate is 4%,which of these anticipated four-year flows would yield the greatest net present value?

The Analytic Hierarchy Process is being employed in a project selection decision.One major criteria,cost,receives a weighting value of 40%,which is split into short term (50%),intermediate term (30%),and long term (20%).Which of these statements is BEST?

Which statement about the Analytical Hierarchy Process is FALSE?

What criteria might be employed to prioritize projects in a project portfolio? Choose any example project from recent business news and deduce which criteria were most important to the company in question.

What are the advantages and limitations of simple scoring models?

A project manager is using the internal rate of return method to make the final decision on which project to undertake.Which of these four projects has the highest internal rate of return?

A simplified scoring model addresses all the weakness of a checklist model for project screening.

Every decision model contains both objective and subjective factors.

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

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