MPM-001 - Project Fundamentals And Appraisal

11. The business case is an important document in a project as it discusses the _______ of the project
A Who
B When
C Why
D Where

12. Your are involved in drafting the business case for a proposed project. To do this you should consider all of the following except:
A Competitive survival
B The project’s charter
C The Need statement
D Your organization’s overall business strategy

13. Business case does not include the ____
A Project's Stakeholders
B Project Management Plan
C Key performance indicators
D Financial and non financial advantages

14. The Business case is authorized by the -------------------- and owned by the -------------:
A Top management, Sponsor
B Top management, client
C Sponsor, sponsor
D Sponsor, project manager

15. Which is not a method of doing an investment appraisal?
A Internal Rate of Return
B Payback period
C Earned value analysis
D Return on Investment

16. What is not an advantage of Payback period method?
A It is simple to use
B It gives a better picture as the cash flow is discounted
C Is good as an initial filter
D Provides a good idea of the company's liquidity position

17. The Internal Rate of Return (IRR) shows:
A The interest rate at which the project's Net Present Value will be zero
B The project's expected profitability not in absolute terms but as a percentage
C A higher IRR shows a better return on money
D All of the above

18. The Present Value:
A Shows what the current value is of expected future cash flows
B Will be the same for each year of the project
C Is used in Return on Investment (ROI) technique of investment appraisal
D Is not much used today

19. The Net Present Value:
A Is used to show what a future cash flow will be worth in today’s monetary terms
B The higher the NPV the more profitable the project
C As the discount rate is increased the NPV will become lower
D All of the above

20. What will not be included in the Project Charter?
A Scope statement
B Business need for the project
C Expected stakeholder influences
D Completion dates required