PMP Questions ID 4078 your selection committee is debating between two projects project a has a payback period of 18 m

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 24 months

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

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.

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?

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