1. A cellular company is considering two projects. However, due to budget constraints, they can only execute one of the projects. They evaluate both projects as if they were financial investments.
A. Internal rate of return Correct
B. Scoring
C. Sacred cow
D. Checklist
Explanation
Internal rate of return (IRR) is a financial metric used to evaluate investment profitability. The company treats projects as investments, so IRR is the correct numeric financial model. Scoring is non-financial. Sacred cow is a project forced by leadership. Checklist is a basic yes/no tool.
2. What is opportunity cost?
A. The discount amount when present value of cash intake equals the original investment
B. The value of what you are giving up when you select one of two projects Correct
C. The measure of time in which total cash received is equal to, or exceeds, total costs
D. The concept that a dollar today is worth a dollar, but a dollar in a year will be worth less than a dollar
Explanation
Opportunity cost is the value of the best alternative not chosen. When selecting one project, the benefit of the other project is lost. A describes net present value zero. C is payback period. D is time value of money.
3. Which activity is accomplished as part of the executing process of a project?
A. Finalizing the project schedule
B. Managing project stakeholders Correct
C. Returning the project assets to the sponsoring organization
D. Conducting a lessons learned review
Explanation
Executing means carrying out the plan. Managing stakeholders (communication, engagement) is a key execution activity. Finalizing schedule is planning. Returning assets is closing. Lessons learned is closing.
4. A company plans to develop a data warehousing application to collect and organize the data it generates. A cross-functional team will be working on the project, which requires them to take time off from their core jobs. The project manager uses the CCPM approach to ensure their availability for the project.
A. Recruit another team member
B. Create time buffers Correct
C. Extend project completion time
D. Estimate activity completion time
Explanation
CCPM (Critical Chain Project Management) uses time buffers to protect the project schedule from resource delays. Since team members are pulled from core jobs, buffers ensure availability. Recruiting adds cost. Extending time violates CCPM. Estimating is part of planning, not CCPM solution.
5. Which activity is accomplished during the closing process of a project?
A. Monitoring the budget
B. Creating the deliverables inventory
C. Implementing the project plan
D. Obtaining client acceptance of the deliverables Correct
Explanation
Closing includes final acceptance of deliverables by the client. Monitoring budget is controlling. Deliverables inventory is planning or controlling. Implementing plan is executing.