Question 1

How does a checklist project screening model work?

Accepted Answer

The simplest method of project screening

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 four years.What is the non-discounted payback of a project that has cash flows as shown in the table? $$\begin{array} { | l | l | } 
\hline \text { Year } & \text { Cash Flow } \
\hline 0 & - \$ 250,000 \
\hline 1 & \$ 50,000 \
\hline 2 & \$ 60,000 \
\hline 3 & \$ 70,000 \
\hline 4 & \$ 80,000 \
\hline
\end{array}$$

Accepted Answer

A)  3.875 years 
B)  3.625 years 
C)  3.750 years 
D)  3.500 years 
A)  3.875 years 
B)  3.625 years 
C)  3.750 years 
D)  3.500 years

Question 3

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 4

One facet of risk in project screening is:

Accepted Answer

A)  The change in manufacturing operations resulting from the project. 
B)  The initial cash outlay. 
C)  The potential for lawsuits or legal obligation. 
D)  The strategic fit of the project with the company. 
A)  The change in manufacturing operations resulting from the project. 
B)  The initial cash outlay. 
C)  The potential for lawsuits or legal obligation. 
D)  The strategic fit of the project with the company.

Question 5

A project with the chance for a big payout may be funded if an important criterion is:

Accepted Answer

A)  Cost. 
B)  Opportunity. 
C)  Top management pressure. 
D)  Risk. 
A)  Cost. 
B)  Opportunity. 
C)  Top management pressure. 
D)  Risk.

Question 6

What are options models and when should they be used to evaluate projects? Provide an example.

Accepted Answer

Options models open financial analysis t

Question 7

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 8

A commercial factor in project selection and screening might be:

Accepted Answer

A)  A need to develop employees. 
B)  The likelihood that users of the project are injured. 
C)  The long-term market dominance. 
D)  The impact on the company's image. 
A)  A need to develop employees. 
B)  The likelihood that users of the project are injured. 
C)  The long-term market dominance. 
D)  The impact on the company's image.

Question 9

Multiple project environments thrive on:

Accepted Answer

A)  Multi-layered bureaucracy. 
B)  Rigid development processes. 
C)  Narrow communication channels. 
D)  Improvisation by project teams. 
A)  Multi-layered bureaucracy. 
B)  Rigid development processes. 
C)  Narrow communication channels. 
D)  Improvisation by project teams.

Question 10

The systematic process of selecting,supporting,and managing a firm's collection of projects is called:

Accepted Answer

A)  Heavyweight project management. 
B)  Matrix project organization. 
C)  Profile management. 
D)  Project portfolio management. 
A)  Heavyweight project management. 
B)  Matrix project organization. 
C)  Profile management. 
D)  Project portfolio management.

Question 11

The Analytical Hierarchy Process elegantly addresses scaling issues in criteria and negative utility in alternative scores.

Accepted Answer

A) True 
 B)False

Question 12

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 13

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 14

Choose any example from recent news media and explain why their project failed.

Accepted Answer

Examples will vary and may inc

Question 15

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 16

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 17

What two simple rules should be followed when choosing a project selection approach?

Accepted Answer

First and foremost,objectivity and consi

Question 18

A project manager is using the payback method to make the final decision on which project to undertake.The company has a 15% required rate of return and expects a 5% 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? $$\begin{array} { | l | l | } 
\hline \text { Year } & \text { Cash Flow } \
\hline 0 & - \$ 500,000 \
\hline 1 & \$ 50,000 \
\hline 2 & \$ 75,000 \
\hline 3 & \$ 150,000 \
\hline 4 & \$ 150,000 \
\hline 5 & \$ 750,000 \
\hline
\end{array}$$

Accepted Answer

A)  3.9 years 
B)  4.3 years 
C)  4.6 years 
D)  4.1 years 
A)  3.9 years 
B)  4.3 years 
C)  4.6 years 
D)  4.1 years

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

How does a checklist project screening model work?

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?

One facet of risk in project screening is:

A project with the chance for a big payout may be funded if an important criterion is:

What are options models and when should they be used to evaluate projects? Provide an example.

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 commercial factor in project selection and screening might be:

Multiple project environments thrive on:

The systematic process of selecting,supporting,and managing a firm's collection of projects is called:

The Analytical Hierarchy Process elegantly addresses scaling issues in criteria and negative utility in alternative scores.

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

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

Choose any example from recent news media and explain why their project failed.

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.

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

What two simple rules should be followed when choosing a project selection approach?

A checklist screening model does NOT consider:

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

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

How does a checklist project screening model work?

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?

One facet of risk in project screening is:

A project with the chance for a big payout may be funded if an important criterion is:

What are options models and when should they be used to evaluate projects? Provide an example.

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 commercial factor in project selection and screening might be:

Multiple project environments thrive on:

The systematic process of selecting,supporting,and managing a firm's collection of projects is called:

The Analytical Hierarchy Process elegantly addresses scaling issues in criteria and negative utility in alternative scores.

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

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

Choose any example from recent news media and explain why their project failed.

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.

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

What two simple rules should be followed when choosing a project selection approach?

A checklist screening model does NOT consider:

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

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