PMP Questions ID 4079 which of the following is true

Select one

Payback period is the least precise of the cash flow analysis techniques because it does not consider the time value of money.

NPV is the least precise of the cash flow analysis techniques because it assumes reinvestment at the discount rate.

IRR is the least precise of the cash flow analysis techniques because it assumes reinvestment at the cost of capital.

Discounted cash flow analysis is the least precise of the cash flow techniques because it does not consider the time value of money.

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.

New PMP Question & Answers with explanation