- The first project is a process optimization which would result in a cost reduction of $120,000 per year. This benefit would be achieved immediately after the end of the project.
- The second project would be the development of a new product which could produce the following net profits after the end of the project:
| 1. year: |
$ |
15,000 |
| 2. year: |
$ |
125,000 |
| 3. year: |
$ |
220,000 |
Assumed is a discount rate of 5% per year. Looking at the present values of these projects’ benefits in the first 3 years, what is true?
A. Both projects are equally attractive.
B. The first project is more attractive by app. 7%.
C. The second project is more attractive by app. 5%.
D. The first project is more attractive by app. 3%.
answer => D
Comments (3)
A. An information-gathering technique where experts perform a Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis.
B. An information-gathering technique where experts are briefed about the project and then interviewed for their opinions.
C. An information-gathering technique where experts meet and generate ideas about project risk.
D. An information-gathering technique where experts participate anonymously and ideas about project risk are gathered via a circulated questionnaire.
answer => D
Comments (2)
A. Present Value = Future Value/(1+R)
B. Present Value = Future Value/(1-R)
C. Present Value = (1+R)
D. Present Value = (1-R)n / Future Value
answer => A
Comments (4)
A. Rolling wave planning
B. Buildup planning
C. Activity planning
D. Project processe
answer => A
Comments (2)
A. Limited in scope
B. Minimal planning resources
C. Generic cost controls
D. Project wide focus
answer => D
Comments (3)
A. Initiating
B. Executing
C. Planning
D. Controlling
answer => C
Comments (5)
A. Planning, Initiating, Executing, Controlling, Closing
B. Initiating, Planning, Controlling, Executing, Closing
C. Planning, Initiating, Executing, Controlling, Closing
D. Initiating, Planning, Executing, Controlling, Closing
answer => D
Comments (3)
A. Mitigation
B. Deflection
C. Avoidance
D. Transfer
answer => C
Comments (5)
A. Thank him and offer a gift in exchange
B. Politely turn down the gift
C. Ask that the gift be changed to something that can be shared by the team
D. Ask for a gift that can be used up before you return home
answer => B
Comments (7)
A. Developing a plan to minimize potential impact
B. Creating contingency reserves in money and time
C. Making additional resources available
D. Developing a plan to minimize probability
answer => B
Comments (4)
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