PMP Questions ID 4073 which of the following is true regarding npv

Which of the following is true regarding NPV?

Select one

NPV assumes reinvestment at the prevailing rate.

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

NPV assumes reinvestment at the NPV rate.

NPV assumes reinvestment at the cost of capital.

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

Answer

PMP Question No 4071 - All Domains

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

Answer

PMP Question No 4070 - All Domains

You need to collaborate with the stakeholders to determine project approval requirements. Which of the following describes project approval requirements?

Select one

This describes what constitutes project success and how it will be measured.

This describes the conditions that must be met in order to close the project.

This is used in agile project management to determine if an iteration is successful.

This is determined by the project manager in the project charter.

Answer

PMP Question No 4069 - All Domains

When using an agile methodology to manage your project, all of the following Knowledge Areas have processes that are performed before, during, and after an iteration except for which one?

Select one

Risk Management

Schedule Management

Procurement Management

Quality Management

Answer

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