Question 1

The pairwise comparison approach:

Accepted Answer

A)  Is a method to split the weights assigned to subcriteria. 
B)  Is a method to compare pairs of hierarchies prior to any further analysis. 
C)  Is a means of achieving all project objectives within the allocated time frame. 
D)  May be used instead of AHP if time is limited. 
A)  Is a method to split the weights assigned to subcriteria. 
B)  Is a method to compare pairs of hierarchies prior to any further analysis. 
C)  Is a means of achieving all project objectives within the allocated time frame. 
D)  May be used instead of AHP if time is limited. A

Question 2

Which of these is NOT a factor in successful project portfolio management?

Accepted Answer

A)  Flexible structure and freedom of communication 
B)  Low-cost environmental setting 
C)  Emphasis on quality 
D)  Time-paced transition 
A)  Flexible structure and freedom of communication 
B)  Low-cost environmental setting 
C)  Emphasis on quality 
D)  Time-paced transition C

Question 3

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 the NPV for project B is higher at $354,778.Project A has a longer discounted payback,3.3 years,compared to project B's payback of 3.2 years.The best course of action based solely on financial considerations is to opt for project B if only one can be implemented.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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.

Question 6

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.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

What is an internal rate of return and what advantages and disadvantages are accrued by using it to evaluate projects?

Accepted Answer

Internal rate of return (IRR)is a method

Question 10

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.

Question 11

Numeric project selection models,by their very nature,employ objective values.

Accepted Answer

A) True 
 B)False

Question 12

What is project portfolio management and what are its objectives and initiatives?

Accepted Answer

Project portfolio management is the syst

Question 13

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 14

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 15

A principal cause of portfolio underperformance is:

Accepted Answer

A)  Conservative technical communities. 
B)  Government intervention. 
C)  Out-of-sync projects. 
D)  Scarce resources. 
A)  Conservative technical communities. 
B)  Government intervention. 
C)  Out-of-sync projects. 
D)  Scarce resources.

Question 16

A firm is BEST served if its project portfolio:

Accepted Answer

A)  Has a number of low-cost experimental prototypes. 
B)  Devotes significant resources to hit product "home runs." 
C)  Aims to take the marketplace by storm regardless of future trends. 
D)  Represents narrowly concentrated efforts. 
A)  Has a number of low-cost experimental prototypes. 
B)  Devotes significant resources to hit product "home runs." 
C)  Aims to take the marketplace by storm regardless of future trends. 
D)  Represents narrowly concentrated efforts.

Question 17

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 18

Project portfolio management is typically NOT used to balance:

Accepted Answer

A)  Human and technical resources. 
B)  Risk and return. 
C)  Efficiently run projects and nonperformers. 
D)  Various families of projects. 
A)  Human and technical resources. 
B)  Risk and return. 
C)  Efficiently run projects and nonperformers. 
D)  Various families of projects.

Question 19

Quality risk refers to the chance that:

Accepted Answer

A)  The project relies on developing new or untested technologies. 
B)  The firm's reputation may suffer when the product becomes available. 
C)  The well-being of the users or developers may decline dramatically. 
D)  The firm may face a lawsuit. 
A)  The project relies on developing new or untested technologies. 
B)  The firm's reputation may suffer when the product becomes available. 
C)  The well-being of the users or developers may decline dramatically. 
D)  The firm may face a lawsuit.

Question 20

The concept of project portfolio management holds that firms should:

Accepted Answer

A)  Regard all projects as unified assets. 
B)  Manage projects as independent entities. 
C)  Focus on short-term strategic goals. 
D)  Focus on long-term constraints. 
A)  Regard all projects as unified assets. 
B)  Manage projects as independent entities. 
C)  Focus on short-term strategic goals. 
D)  Focus on long-term constraints.

The pairwise comparison approach:

Which of these is NOT a factor in successful project portfolio management?

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

Realignment describes:

A proactive project portfolio:

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

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?

What is an internal rate of return and what advantages and disadvantages are accrued by using it to evaluate projects?

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

Numeric project selection models,by their very nature,employ objective values.

What is project portfolio management and what are its objectives and initiatives?

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

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

A principal cause of portfolio underperformance is:

A firm is BEST served if its project portfolio:

Which of these statements about valuation models is NOT correct?

Project portfolio management is typically NOT used to balance:

Quality risk refers to the chance that:

The concept of project portfolio management holds that firms should:

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

The pairwise comparison approach:

Which of these is NOT a factor in successful project portfolio management?

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

Realignment describes:

A proactive project portfolio:

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

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?

What is an internal rate of return and what advantages and disadvantages are accrued by using it to evaluate projects?

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

Numeric project selection models,by their very nature,employ objective values.

What is project portfolio management and what are its objectives and initiatives?

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

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

A principal cause of portfolio underperformance is:

A firm is BEST served if its project portfolio:

Which of these statements about valuation models is NOT correct?

Project portfolio management is typically NOT used to balance:

Quality risk refers to the chance that:

The concept of project portfolio management holds that firms should:

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