Project Management Question Bank
for Exam preparation

Q2. If Project A has a net present value (NPV) of US $30,000 and project B has an NPV of US $50,000, what is the opportunity cost if project B is selected?

1. $23,000
2. $30,000
3. $20,000
4. $50,000

Q3. The X in the DfX can be:

1. Competing project constraints
2. Different aspects of product development
3. Design assumptions
4. Discretionary dependencies

Q4. A project manager needs to determine if the manufacturing process planned for the new micro-satellites will meet quality standards. Each satellite takes about three days to manufacture and costs US $125,000. The satellites are so small that inspection would destroy them. Under these circumstances, what should the project manager do?

1. Outsource the inspection to another company with more expertise.
2. Evaluate the attributes of the population.
3. Inspect a sample of the satellites.
4. Decrease the cost of quality.

Q5. Which of the following does NOT assess the value a project brings to an organization?

1. Benefit cost analysis
2. Net present value
3. Value analysis
4. Needs assessment

Q6. After identifying a risk to your project, you determine that there is a high probability of risk occurring with a low consequence. What mitigation strategy is BEST to adopt?

1. Eliminate the consequence of the risk.
2. Avoid the risk
3. Add the risk to the watch list
4. Insure against the risk.

Q7. Your company is considering buying a building worth $1 million. If the company buys this building and rents it out for the next five years, it will get $100,000 per year as rent (receivable by the end of each year). At the end of the fifth year, the company will resell the building at $1.1 million. What is the NPV of this investment at 10 percent per annum discount rate?

1. 62092
2. 600000
3. 1600000
4. 2200000

Q8. Senior management is complaining that they are not able to easily determine the status of ongoing projects in the organization. Which of the following types of reports would help provide summary information to senior management?

1. Detailed cost estimates
2. Project management plans
3. Bar charts
4. Milestone reports

Q9. As the project manager of a project, you had estimated certain activity durations before acquiring all project team members. On acquisition, you find that their actual competency levels are much lower than what you anticipated. In such a case, you will:

1. Make no changes to the schedule
2. Ask the project team members to meet the original schedule by putting in overtime, if required
3. Make changes to activity duration and schedule incorporating the changed competency levels
4. Inform the customer that the project is behind schedule

Q10. Which of the following is not a project competing constraint?

1. Budget
2. Procurement
3. Risk
4. Resource