Question 1

The simplest method of project screening and selection is developing a(n) __________ that contains criteria that pertain to a choice of projects.

Accepted Answer

The answer of The simplest method of project screening and...

Question 2

A wedding planner allows $10,000 for flowers and three weeks to receive all RSVPs back from the list of 700 guests. Both estimates are correct within a fraction of a percent. We could describe this factoid as:

Accepted Answer

A)  numeric and subjective. 
B)  numeric and objective. 
C)  non-numeric and subjective. 
D)  non-numeric and objective.

Question 3

An internal operating issue in project screening and selection is:

Accepted Answer

A)  expected return on investment. 
B)  change in physical environment. 
C)  patent protection. 
D)  the chance that the firm's goodwill will suffer due to the quality of the finished project.

Question 4

How does a checklist project screening model work?

Accepted Answer

The answer of How does a checklist project screening model...

Question 5

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

Accepted Answer

A)  ease of use. 
B)  comparability. 
C)  capability. 
D)  flexibility.

Question 6

The Analytical 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%.

Question 7

A project screening criterion that allows the company to compare long term versus short term projects, projects with different technologies, and projects with different commercial objectives is:

Accepted Answer

A)  flexibility. 
B)  ease of use 
C)  capability 
D)  realistic

Question 8

The efficient frontier in project management is the set of portfolio options that offer:

Accepted Answer

A)  a minimum return for a minimum risk. 
B)  a minimum return for a maximum risk. 
C)  a maximum return for a minimum risk. 
D)  a maximum return for a maximum risk.

Question 9

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.

Question 10

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 11

Describe any four types of risk that projects may hold.

Accepted Answer

The answer of Describe any four types of risk that...

Question 12

__________ is the systematic process of selecting, supporting, and managing a firm's collection of projects.

Accepted Answer

The answer of __________ is the systematic process of selecting,...

Question 13

A project selection model that is broad enough to be applied to multiple projects has the virtue of __________.

Accepted Answer

The answer of A project selection model that is broad...

Question 14

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

Accepted Answer

A) True 
 B)False

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

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?

Accepted Answer

A)  If project A is successfully completed, it will yield three times the benefits that project C would have provided. 
B)  If project C is chosen, the company would benefit only half as much as if they had chosen project B. 
C)  Project C is better than project B for this company at this point in time. 
D)  Project A is better than project B for this company at this point in time.

Question 17

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.

Question 18

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.

Question 19

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.

Question 20

Financial models are all predicated on the __________ principal.

Accepted Answer

The answer of Financial models are all predicated on the...

Exam 3: Project Selection and Portfolio Management

The simplest method of project screening and selection is developing a(n) __________ that contains criteria that pertain to a choice of projects.

A wedding planner allows $10,000 for flowers and three weeks to receive all RSVPs back from the list of 700 guests. Both estimates are correct within a fraction of a percent. We could describe this factoid as:

An internal operating issue in project screening and selection is:

How does a checklist project screening model work?

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

The Analytical 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 screening criterion that allows the company to compare long term versus short term projects, projects with different technologies, and projects with different commercial objectives is:

The efficient frontier in project management is the set of portfolio options that offer:

Which of these statements about valuation models is NOT correct?

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

Describe any four types of risk that projects may hold.

__________ is the systematic process of selecting, supporting, and managing a firm's collection of projects.

A project selection model that is broad enough to be applied to multiple projects has the virtue of __________.

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

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.

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?

A firm is best served if its project portfolio:

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

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:

Financial models are all predicated on the __________ principal.