Project Management : Project Selection

20 Questions | Total Attempts: 873

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Project Management : Project Selection

When you choose a project, there is a lot that you need to keep in mind so that you do not settle for second best when you could get the best. The project management quiz below is on project selection. Give it a shot and see just how much you know about it the topic. Ensure you come back for more quizzes!


Questions and Answers
  • 1. 
    Organizations-both large and small-cannot undertake most identified potential projects because of resource limitations and other constraints.
    • A. 

      True

    • B. 

      False

  • 2. 
    It is best to view projects as an end in themselves, not as a source of cash.
    • A. 

      True

    • B. 

      False

  • 3. 
    Money earned today is worth more than money earned in the future, primarily due to inflation.
    • A. 

      True

    • B. 

      False

  • 4. 
    From the viewpoint of NPV only, if Project 2 has a higher NPV than Project 1, Project 1 should be chosen.
    • A. 

      False

    • B. 

      True

  • 5. 
    The required rate of return is the minimum acceptable rate of return on an investment.
    • A. 

      False

    • B. 

      True

  • 6. 
    If you assign weights based on percentage, the sum of all the criteria's weights must total 100 percent.
    • A. 

      True

    • B. 

      False

  • 7. 
    Low- or medium-priority projects that can be finished in less time than high-priority projects should always be completed first.
    • A. 

      True

    • B. 

      False

  • 8. 
    The main goal of programs is to obtain benefits and control not available from managing projects separately.
    • A. 

      True

    • B. 

      False

  • 9. 
    Organizations should only pursue projects that have the best financial value.
    • A. 

      True

    • B. 

      False

  • 10. 
    Some core projects can be high risk, have high value, and require good timing
    • A. 

      True

    • B. 

      False

  • 11. 
    In the four-stage planning process for selecting projects, ____ is the last step.
    • A. 

      Strategic planning

    • B. 

      Project Planning

    • C. 

      Business area analysis

    • D. 

      Resource allocation

  • 12. 
    One method for selecting projects based on broad organizational needs is to first determine whether they meet three important criteria: need, ____, and will.
    • A. 

      Ambition

    • B. 

      Practicality

    • C. 

      Funding

    • D. 

      Vision

  • 13. 
    A positive NPV means the return from a project exceeds the ____ cost of capital-the return available by investing the capital elsewhere.
    • A. 

      Fixed

    • B. 

      Alternative

    • C. 

      Variable

    • D. 

      Opportunity

  • 14. 
    The ____ rate is also called the capitalization rate or opportunity cost of capital.
    • A. 

      Prime

    • B. 

      Discount

    • C. 

      Markup

    • D. 

      Cash flow

  • 15. 
    If the benefit for a given year is $75,000 and the associated discount factor is .79, the discounted benefit is ____.
    • A. 

      $150,000

    • B. 

      $75,000

    • C. 

      $59,250

    • D. 

      $94,937

  • 16. 
    Given discounted benefits of $516,000 and discounted costs of $243,200, your ROI is ____ %.
    • A. 

      89

    • B. 

      112

    • C. 

      212

    • D. 

      12

  • 17. 
    ____ are new requirements imposed by government, management, or some external influence.
    • A. 

      Opportunities

    • B. 

      Directives

    • C. 

      Thresholds

    • D. 

      Problems

  • 18. 
    ____ should be formed and continuously updated to help the organization as a whole make better strategic decisions.
    • A. 

      Programs

    • B. 

      Projects

    • C. 

      Monitors

    • D. 

      Portfolios

  • 19. 
    Which of the following portfolio management tasks should occur first?
    • A. 

      Prioritize projects on a list

    • B. 

      Put all projects in one list

    • C. 

      Put all projects into different lists

    • D. 

      Divide projects into investment categories

  • 20. 
    A project portfolio ____ map compares relative value to project risk.
    • A. 

      Venture

    • B. 

      Value

    • C. 

      Viability

    • D. 

      Risk

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