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Project Management Question Bank
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Question:

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






Q2. Your project has a cost performance index (CPI) of 1.1, and a schedule performance index (SPI) of 1.03. All the deliverables to date have been completed to the customer’s satisfaction. Getting formal acceptance of the project management plan was difficult because the schedule was compressed beyond reason. Actvity B has float of 2 weeks, activity C has float of zero, activity D has zero float and activity E is being done by a new employee and has a float of 3 weeks. The hardest part of the project is about to start and even the project management office has asked you to increase your management oversight and report more often on the status of the project. In preparing your report you find out that the team member completing activity D reports a one day delay, the team member completing activity D reports that the material needed t o complete the activity has not arrived. The team member for activity B tells you his activity will be delayed by two days because the customer has delayed formal acceptance during the Validate Scope process. Another team member reports that the earned value-related trend report is favorable. What would you do if you were the project manager?

  1. Investigate why it was difficult to get formal acceptance of the project management plan and whether that problem added any risks to the project.
  2. Hold a meeting to walk through the upcoming difficult activities with those doing the work.
  3. Investigate the reason for the delayed material and the effect on the project
  4. Reassign resources from noncritical path activities to critical path activities and meet with the customer about activity B.
Correct Answer

Q3. A project charter that formally authorized a project was created. The project charter documented the initial requirements to satisfy stakeholders' needs and expectations. How often should the project charter be revised?

  1. At the beginning, middle, and end of a project
  2. Once a month
  3. Project charter is usually not updated during the course of the project.
  4. As required by the PMO
Correct Answer

Q4. When is it BEST to perform the Close Project or Phase process?

  1. At the beginning of the project with verification throughout the project.
  2. At the end of project planning
  3. During project closure
  4. At the end of each project phase
Correct Answer

Q5. The Manage Team process is part of what process group?

  1. Planning
  2. Executing
  3. Monitoring and Controlling
  4. Closing
Correct Answer

Q6. Which of the following techniques can help clarify the structure, requirements, and other terms of the purchases so that mutual agreement between a buyer and a seller can be reached prior to signing the contract?

  1. Independent estimates
  2. Advertising
  3. Bidder conferences
  4. Procurement negotiations
Correct Answer

Q7. You were recently appointed as a project manager in an organization. You are well recognized in the organization because of your connection with management, and team members obey you because of this relationship. What kind of power do you possess here?

  1. Relational power
  2. Punishment power
  3. Expert power
  4. Reward power
Correct Answer

Q8. Which part of the risk management process receives input from risk response owners?

  1. Identify Risks
  2. Perform Qualitative Risk Analysis
  3. Perform Quantitative Risk Analysis
  4. Plan Risk Responses.
Correct Answer

Q9. All the following are tools of the Control Schedule process except:

  1. Parametric estimating
  2. Critical Path Method
  3. Schedule compression
  4. Leads and lags
Correct Answer

Q10. A project manager was involved in preparation of the project charter for an external project. One of the inputs to the project charter was a statement of work (SOW). The SOW may have been received from the customer as part of any of the following except:

  1. As part of a request for information
  2. As part of the business case
  3. As part of a request for proposal
  4. As part of a contract
Correct Answer










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