Exam 3: Project Selection and Portfolio Management

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.

Which statement about the Analytical Hierarchy Process is FALSE?

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

A project manager is using the net present value 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 four years.What is the NPV of a project that has cash flows as shown in the table? Year Cash Flow 0 -\ 350,000 1 \ 50,000 2 \ 80,000 3 \ 100,000 4 \ 150,000

Every decision model contains both objective and subjective factors.

Which statement regarding project selection and screening criteria is BEST?

If a model can be applied successfully by people in all areas and levels of an organization,it is said to possess the trait of:

A simple scoring model is used to decide among three projects that we'll call A,B,and C.The total score for project A is 30,for project B is 20,and for project C is 10.Which of the following statements is BEST?

The reciprocal of the payback period is used to calculate the average rate of return for a project.

Describe any four types of risk that projects may hold.

Which statement about the use of the profile model is BEST?

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?

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?

Souder's project screening criterion of realism addresses the question:

Describe the use of a profile model and sketch an example,clearly labeling every component and the best alternative in your example.

Successful project management firms rely on home runs and narrowly concentrated efforts since specialization creates name recognition and market share.

A selection model that is broad enough to be applied to multiple projects has the benefit of:

Which statement regarding project selection is BEST?

A project manager is using a simple scoring model to decide which of four projects is best,given the company's limited resources.The criteria,importance weights,and scores for each are shown in the table.Which project should be chosen?

The simple scoring model has this advantage over a checklist model for screening projects.