1.
You are the newly appointed project manager for a pharmaceutical company. Your company has asked you to head up a project to research a new children’s medication. You’ve identified the lab equipment you’ll need, the software needed to perform analysis and measurements, and the skill level and types of the technicians and researchers for this project. Which of the following is true?
2.
What are the tools and techniques used in the Initiation process?
3.
Which of the following is true regarding IRR?
4.
Which of the following is true regarding NPV?
5.
Comparative methods, scoring methods, and economic and cash flow analysis are all part of which of the following?
6.
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
35 percent.
Project Spokane: The payback period is 25 months, and the IRR is 32
percent.
Which project should you recommend to the selection committee?
7.
Mathematical models using linear, dynamic, integer, or algorithm models are considered:
8.
Your selection committee meets on a semiannual basis. They’ve determined that projects must meet or exceed a specific profit limit in order to be accepted and prioritized on the project list. Which of the following is true?
9.
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: Payback period is 18 months, and the NPV is 250.
Project Nevada: Payback period is 24 months, and the NPV is 300.
Which project would you recommend to the selection committee?
10.
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, and expected inflows are $25,000 per quarter for the first 2 years, and then $75,000 per quarter thereafter. What is the payback period?
