Project Management Question Bank
for Exam preparation

Q2. There are two projects to choose between: Project A with an NPV of US $45,000, or Project B with an NPV of US $85,000. What is the opportunity cost of selecting project B?

1. $45,000
2. $85,000
3. $40,000
4. $130,0000

Q3. You are trying to decide whether to lease or buy an item for your project. The daily lease cost is US $150. The investment cost to purchase the item is US $2,000, and the daily cost is US $50. In how many days will the lease cost be the same as the purchase cost?

1. 10
2. 15
3. 20
4. 25

Q4. During the planning phase of your project, your team decided to procure a certain brand of hardware because it had the lowest price and came with free shipping and installation. This approach saved $6,000 over the other brands. Since that purchase, however, you discovered the annual maintenance costs for this hardware are $2,500 per year, and $12,500 over the life of the hardware. These costs were not budgeted in the project, nor were they included in the Total Cost of Ownership (TCO) analysis that was part of the project business case. What should you do?

1. Request a new budget
2. Notify the stakeholders immediately
3. Revise the business case
4. Do nothing. This will not affect the project budget

Q5. As project manager, you would like to show the relationship between two variables to help your project team understand the quality impact better. Which tool should you use?

1. Scatter Diagram
2. Run Chart
3. Fishbone Diagram
4. Pareto Chart

Q6. Adam has just taken over a construction project. The project is currently in the planning phase of the project lifecycle. Adam’s next deliverable is to produce an effective stakeholder engagement strategy. Which of the following is the most important component of an effective stakeholder engagement plan?

1. Management style
2. Risk tolerance
3. Construction know-how
4. Communications

Q7. You are sitting with your team members and experts in a room and defining the definition of probability of events occurring and the impact. What process is this?

1. Identify risks
2. Perform qualitative risk analysis
3. Plan risk management
4. Plan risk responses

Q8. A project is seriously delayed. Earned value analysis shows the project needs to be completed 10 percent faster than the work has been going. To get the project back on track, management wants to add 10 people to an activity currently assigned to one person. The project manager disagrees, noting that such an increase will not produce an increase in speed. This is an example of:

1. The law of diminishing returns
2. Fast tracking
3. Earned value
4. Life cycle costing

Q9. During the course of your project, you notice that most of the changes occurring on the project come from the research department. What should you do?

1. Assign a team member to work solely with the research department
2. Change your communications management plan, so only you are assigned to interact with the research department
3. Ask the research department to assign one person to be your liaison
4. Talk to the research department to understand the reasons for the changes

Q10. A planning package is a work breakdown structure component below the control account and above the work package with known work content but without:

1. Work packages
2. User stories
3. Schedule activities
4. Requirements