PMP Questions ID 1028 project management is concerned with managing which type of project knowledge page 72

Select four

Ensuring that documents are kept up to date with versioning control

Ensuring that documents are printed and stored in a project notebook(s) for future reference

Ensuring that documents and artifacts are distributed appropriatel

Ensuring that documents are stored appropriately

Ensuring that documents are easily accessible to stakeholders

712.

You are a project manager for Zippy Tees. Your selection committee has just chosen a project you recommended for implementation. Your project is to manufacture a line of miniature stuffed bears that will be attached to your company's trendy T-shirts. The bears will be wearing the same T-shirt design as the shirt to which they're attached. Your project sponsor thinks you've impressed the big boss and wants you to skip to the manufacturing process right away. What is your response?

Select one

Agree with the project sponsor because that person is your boss and has a lot of authority and power in the company.

Require that a preliminary budget be established and a resource list be put together to alert other managers of the requirements of this project. This should be published and signed by the other managers who are impacted by this project.

Require that a project charter be written and signed off on by all stakeholders before proceeding.

Suggest that a preliminary business case be written to outline the objectives of the project.

713.

Your selection committee is debating between two projects. Project A has a payback period of 18 months. Project B has a cost of $125,000, with expected cash inflows of $50,000 the first year and $25,000 per quarter after that. Which project should you recommend?

Select one

Project A, because Project B's payback period is 20 months

Either Project A or Project B, because the payback periods are equal

Project A, because Project B's payback period is 21 months

Project A, because Project B's payback period is 24 months

Select three

The Develop Project Charter process resides in the Project Stakeholder Management Knowledge Area process because this Knowledge Area is concerned that stakeholders' expectations are in alignment with the project scope and with the final results of the project.

The project manager is responsible for informing the stakeholders that the project charter has been approved and ensuring that they receive a copy.

The project charter will be used to ensure that stakeholders' expectations are in alignment with the project scope and with the final results of the project.

The results of the needs assessment are documented in the project charter so that stakeholders' expectations are in alignment with the project scope and with the final results of the project.

The project charter documents the stakeholders who will own monitoring and measuring the benefits of the project to ensure they are realized.

The project charter will be aligned with other project planning documents created later in the project, and this will ensure that the stakeholders understand the project objectives.

Select one

It is an economic feasibility study that helps determine whether the investment in the project is worthwhile.

It describes the need or demand that brought about the project.

It describes how the benefits of the project will be measured and obtained.

It contains the results of the benefit measurement methods that will assist in project selection.

Select one

IRR is not difficult to calculate.

IRR is a constrained optimization method.

IRR is the discount rate when NPV is equal to zero.

IRR assumes reinvestment at the cost of capital.

717.

You are the project manager for Insomniacs International. Since you don't sleep much, you get a lot of project work done. You're considering recommending a project that costs $575,000; expected inflows are $25,000 per quarter for the first two years and then $75,000 per quarter thereafter. What is the payback period?

Select one

40 months

38 months

39 months

41 months

Select one

NPV assumes reinvestment at the cost of capital.

NPV decisions should be made based on the lowest value for all the selections.

NPV assumes reinvestment at the prevailing rate.

NPV assumes reinvestment at the NPV rate.

719.

You are the project manager for the Late Night Smooth Jazz Club chain, with stores in 12 states. Smooth Jazz is considering opening a new club in Kansas City or Spokane. You have derived the following information: Project Kansas City: The payback period is 27 months, and the IRR is 6 percent. Project Spokane: The payback period is 25 months, and the IRR is 5 percent. Which project should you recommend to the selection committee?

Select one

Project Spokane, because the payback period is the shortest

Project Kansas City, because the payback period is the longest

Project Spokane, because the IRR is the lowest

Project Kansas City, because the IRR is the highest

720.

You are the project manager for the Late Night Smooth Jazz Club chain, with stores in 12 states. Smooth Jazz is considering opening a new club in Arizona or Nevada. You have derived the following information: Project Arizona: The payback period is 18 months, and the NPV is (250). Project Nevada: The payback period is 24 months, and the NPV is 300. Which project would you recommend to the selection committee?

Select one

Project Arizona, because the payback period is shorter than the payback period for Project Nevada

Project Nevada, because its NPV is a positive number

Project Arizona, because its NPV is a negative number

Project Nevada, because its NPV is a higher number than Project Arizona's NPV

2,934 New PMP Id 1028 project management is concerned with managing which type of project Questions & Answers with explanation