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Project Initiation and Selection MCQ

Utility Project is a type of project with high risk serving to deteriorate the effectiveness and/or efficiency of an organization by affecting the strategic goals of the organization.

Answer

Correct Answer: False

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The specified price of a good in a real option contract is known as ?

Answer

Correct Answer: Strike Price

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A type of project supporting the long-term viability of an organization and its stated mission is known as ?

Answer

Correct Answer: Strategic Project

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______ is also known as tollgate.

Answer

Correct Answer: Stage Gate

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________ is a contract giving the owner the right (but not the obligation) to purchase a good at a stated price sometime in the future.

Answer

Correct Answer: Real Option

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The ratio of discounted future returns divided by the initial investment is known as ?

Answer

Correct Answer: Profitability Index

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The number of time periods (e.g., years) needed to recover the cost of the project is known as ?

Answer

Correct Answer: Payback Period

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The sum of the discounted cash flows (DCFs) over the estimated life of the project is known as Net Present Value

Answer

Correct Answer: True

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The discount rate that results in an NPV (net present value) equal to zero is known as ?

Answer

Correct Answer: Internal Rate of Return

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An increase in the price of goods and services without any corresponding increase in quality or functionality is known as_____.

Answer

Correct Answer: Inflation

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A tool that uses a branching structure to map out decision points and________, including uncertain events are known decisions.

Answer

Correct Answer: Consequences

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What does ARR stand for ?

Answer

Correct Answer: Accounting Rate of Return

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More Project Management Subjects
An Introduction to Project Management
Project Planning
Agile Project Management
Project Content
Probability and Distribution Functions
Scheduling a Deterministic Project
Project Trade-offs and Risk Mitigation
Scheduling Stochastic Projects
Monte Carlo Simulation
Managing Project Resources
Project Teams
Managing Decentralized Projects
Assessing Project Progress
Managing a Multi-Project Environment
Software Management
More Resources
Project Management Skill Assessment
Project Management PDF
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