Description : The return available by investing the capital elsewhere is known as (A) profit rate (B) discount rate (C) opportunity cost (D) return on investment
Last Answer : (C) opportunity cost
Description : Feasibility analysis is the first stage in the process of project development. (True/False)
Last Answer : Ans. True
Description : The purpose of project planning is to identify various areas of the project work and the influencing factors, and subsequently define the boundaries of the project performance. (True/False)
Description : Quality control in the final analysis is : 1. using the technical procedures of monitoring project results to decide if the outputs meet the requirements 2. a production system 3. an inspection system 4. fitness for purpose
Last Answer : 1. using the technical procedures of monitoring project results to decide if the outputs meet the requirements
Description : A company is considering investing surplus funds in a project. Calculate the NPV at 10 % discount rate for the following data Project-A Year 0- (100) Year 1-100 Year 2-100 A. 73.5 B. 173.5 C. 273.5 D.100
Last Answer : A. 73.5
Description : For an activity in a CPM analysis, the early Finish time is 13 and the late Finish time is 13. Duration of activity is 6. Which of the following statements is true? A.The early start is 6 B. ... of the activity is 13 C.The slack of this activity is 13 D.The activity is on the critical path
Last Answer : D.The activity is on the critical path
Description : All of the following are true regarding the Qualitative Risk Analysis process except which one? A. Probability and impact and expert interview are used to help correct biases that occur in the data ... of this process used to determine which risks need near-term response plans.
Last Answer : C. Qualitative Risk Analysis is an easy method of determining risk probability and impact that usually takes a good deal of time to perform.
Description : Which of the following is true? A. Discounted cash flow analysis is the least precise of the cash flow techniques, because it does not consider the time value of money. B. NPV is ... least precise of the cash flow analysis techniques, because it assumes reinvestment at the cost of capital.
Last Answer : C. Payback period is the least precise of the cash flow analysis techniques, because it does not consider the time value of money.
Description : )Which phase of the Acquisition Process Cycle does source qualifications reside? 1. Pre-Award 2. Award 3. Post Award 4. Origination
Last Answer : 2. Award
Description : The justification for the investment to be made in a project is documented in the: a. Cost Breakdown Structure. b. procurement strategy. c. business case. d. Project Management Plan.
Last Answer : c. business case.
Description : An Expected Monetary Value (EMV) of $100000 on a potential project event in the project means which of the following? Select one: a. A number that can be ignored b. An opportunity that ... Actual investment returns on the event e. A threat that must be considered to minimize the project risk
Last Answer : b. An opportunity that must be explored
Description : ___ should be made of all cost factors so as to reflect on all relevant investment and operational costs of the project including contingencies.
Last Answer : Ans. Realistic estimates
Description : Net Present Value of a machine is A. PV of cash inflows less cost of investment B. PV of cash inflows ÷ cost of investment C. PV of net profit after tax less cost of investment D.PV of cash inflows less average cost of investment
Last Answer : A. PV of cash inflows less cost of investment
Description : Project Manager must ensure that it develops appropriate trade off/s as A. Time, cost and performance B. Time, value and performance C.Men, Materials and Machines D.Money, Cost and Return on Investment
Last Answer : A. Time, cost and performance
Description : The justification for the investment to be made in a project is documented in the: a. Cost Breakdown Structure. b. procurement strategy. c. business case. d. Project Management Plan
Description : Cost budgeting can be best described by which of the following? 1. The process of developing the future trends along with the assessment of probabilities, uncertainties, and inflation that could ... of gathering, accumulating, analyzing, reporting, and managing the costs on an on- going basis
Last Answer : 3. The process of establishing budgets, standards, and a monitoring system by which the investment cost of the project can be measured and managed
Description : Several upgradation tasks done in the same area by the same company might best be managed as part of a/an (A) portfolio (B) program (C) investment (D) collaboration
Last Answer : (B) program
Description : Suppose an investment of $100 has grown to $110 in one year. What is the return on investment? (A) 0.1% (B) 1.0% (C) 10% (D) none of these
Last Answer : (C) 10%
Description : An investment should be accepted if its Net Present Value (NPV) is (A) 0 (B) 1 (C) positive (D) negative
Last Answer : C) positive
Description : MM Model of Dividend irrelevance uses arbitrage between : A. Dividend and Bonus B. Dividend and Capital Issue C. Profit and Investment D. None of the
Last Answer : B. Dividend and Capital Issue
Description : Which of the following types of company will have the lowest level of investment in working capital to finance? A. Water suppliers B. Supermarkets C. Chemical manufacturers D. Ship builders E. Car
Last Answer : B. Supermarkets
Description : Assume that a firm has accurately calculated the net cash flows relating to two mutua lly exclusive investment proposals. If the net present value of both proposals exceed zero and the firm is ... maximize shareholder wealth and, since the projects are mutually exclusive, we can only take one
Last Answer : D. accept the proposal that has the largest NPV since the goal of the firm is to maximize shareholder wealth and, since the projects are mutually exclusive, we can only take one
Description : Which of the following is least likely to be part of the calculation of the terminal- year incremental net cash flow for an energy-related expansion project? A. An initial working capital ... Disposal/reclamation costs C. Capitalized expenditures D. Salvage value of any sold or disposed assets
Last Answer : D. Salvage value of any sold or disposed assets
Description : Capital budgeting is a part of: A. Investment decision B. Working capital management C. Marketing management D. Capital structure
Last Answer : A. Investment decision
Description : Inferior investment alternatives are identified when: A. α < 0. B. β = 0. C. β > 1. D. β < 1.
Last Answer : A. α < 0.
Description : Most favourable portfolio is proficient portfolio with the A. lowest risk B. highest risk C. highest utility D. least investment
Last Answer : C. highest utility
Description : Consider these two investment strategies: Strategy is the dominant strategy because . A. 1, it is riskless B. 1, it has the highest reward/risk ratio C. 2, its return is at least equal ... sometimes greater D. 2, it has the highest reward/risk ratio E. both strategies are equally preferred
Last Answer : C. 2, its return is at least equal to Strategy 1 and sometimes greater
Description : . An independent relationship must exist between the attribute that can be measured and the external quality attribute. a) True b) False
Last Answer : b) False
Description : Project managers have to assess the risks that may affect a project. a) True b) False
Description : We can accurately estimate lines of code from the problem specification. A. True B. False C. NA D. NA
Last Answer : B. False
Description : "Larger code size doesnot necessarily mean better quality or higher efficiency." A. True B. False C. NA D. NA
Last Answer : A. True
Description : An independent relationship must exist between the attribute that can be measured and the external quality attribute. a) True b) False
Description : Withdrawal may be the most effective way to settle conflicts. (True/False)
Description : In the method of problem-solving, a committee is set up to find a solution. (True/False)
Description : The smoothing method reduces the scale of conflict by making differences seem less important. (True/False)
Description : The Project Leader is the person responsible for the overall project. (True/False)
Description : Project leader role will require an individual with strong management skills. (True/False)
Last Answer : ns. True
Description : . A project leader or manager is expected to be completely accountable for his team members and meeting the team’s targets. (True/False)
Description : WBS is produced by identifying the key elements, breaking each element down into component parts and continuing to breakdown until manageable work packages have been identified. (True/False)
Description : The entire process of a project may be considered to be made upon a number of sub- processes placed in different stages called the Work Breakdown Structure. (True/False)
Description : Other reported advantages include a sharper orientation toward results, better interdepartmental coordination, and higher worker morale. (True/False
Description : The players in project management are the individuals and the organisations. (True/False)
Description : The planning and scoping should be such that the project manager can assess every stage of the project and the quality of the deliverable of the project at every stage. (True/False)
Description : Good plans always do not allow for flexibility to adapt to changing circumstances. (True/False)
Last Answer : Ans. False
Description : The technical feasibility aspect of a project relates to the earning capacity of the project. (True/False)
Description : The project manager works with the project sponsor to identify the necessary resources and team members needed to further develop the key project parameters – Cost, Scope, Schedule, and Quality (CSSQ). (True/False)
Description : The function of project initiation is to describe all the parameters of a project and establish the suitable project management and excellence environment necessary to complete the project. (True/False)
Description : Scope, cost, and schedule are some of the parameters used for project negotiation. (True/False)
Description : Project management provides the project managers and team members with the principles they require to effectively meet the needs of the customer. (True/False)