PMP Questions ID 4076 which of the following is not true regarding the purpose of a business case

All Domains

Agile & Scrum

People

Process

Business Environment

CLOUD COMPUTING

Communications

Cost

DECISION SUPPORT SYSTEM (DSS)

FIREWALL TYPES & IMPLEMENTATION

Integration

IT STRATEGY COMMITTEE & IT STEERING COMMITTEE

Procurement

Quality

Resource

Risk

Schedule

Scope

Stakeholder

New PMP Question & Answers with explanation

Which of the following is not true regarding the purpose of a business case?

Select one

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

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.

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

PMP Question No 4075 - All Domains

Which of the following is true regarding IRR?

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.

Answer

PMP Question No 4074 - All Domains

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

Answer

PMP Question No 4073 - All Domains

Which of the following is true regarding NPV?

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.

Answer

PMP Question No 4072 - 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 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