MPM-001 - Project Fundamentals And Appraisal (Set 3)

1.  The business case is developed to:

 A  Assesses the financial viability of the project

 B  Assesses the feasibility of all aspects of the project

 C  Identify the sponsor

 D  All of the above

 

2.  Which is not an investment appraisal technique?

 A  Payback period

 B  ROI

 C  DCF

 D  OPERA

 

3.  Which statement is not true?

 A  Shorter the payback period, better is the project viability

 B  Longer the payback period, lower is the project viability

 C  Payback period is a simple and easy method for appraising investments

 D  Payback period considers cost of borrowing capital

 

4.  (Average Annual profit / Initial investment) x 100% is used to calculate the?

 A  Net cash flow

 B  Pay back period

 C  Return on Investment

 D  Rate of investment

 

 

5.  What factors should be looked into when developing the business case?

 A  High level work breakdown structure

 B  A broad resource and cost analysis

 C  Project's expected time frame

 D  All of the above

 

6.  Who is responsible for ensuring the project has funds?

 A  The project manager

 B  The bankers

 C  The client

 D  The project sponsor

 

7.  Why is stakeholder analysis done?

 A  To identify all the project's stakeholders

 B  To assess the source of funding for the project

 C  To ensure stakeholders' requirements are properly considered in project planning

 D  To get approval of documents

 

8.  What is not included in the business case? 

 A  Key deliverables

 B  Health and safety parameters

 C  The project's network schedule

 D  Quality criteria

 

 9. All the following statements are true of a project charter except:

 A  It formally authorizes the project

 B  Includes organizations involved in the project

 C  Is issued by the project manager

 D  It should be aligned to the organization's strategic goals

 

10.  The PESTLE analysis enables us to look at the following 6 major considerations in a logical and systematic manner

 A  Political, Economic, Sociological, Technical, Legal, Environment

 B  Practical, Estimation, Scientific, Technical, Local, Environmental

 C  Political, External, Scientific, Total, Legal, Estimation

 D  Practical, External, Sociological, Terminal, Legal, Estimation