Project Management Question Bank
for Exam preparation

Q2. 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

Q3. You are a project manager of a construction project that is financially challenged and behind schedule. A foreman fails to deliver a deliverable of the project on time as promised. You need to address the issue with the foreman. How should you approach the foreman?

1. You are the project manager responsible for the whole of the project. To ensure you have control, remain firm, and reprimand the foreman and the team to ensure they do not slow down.
2. You disregard the issue, acknowledging that what is done is done and develop a plan for moving forward.
3. You meet with the foreman inquiring about what happened and seek to understand and solve the problem.
4. You reprimand the foreman n private and ask that he keep you better informed in the future.

Q4. The project statement of work is a narrative description of products, services, or results to be delivered by a project. The procurement statement of work includes:

1. Project scope statement
2. WBS dictionary
3. WBS
4. None of the above

Q5. You have overheard two functional managers arguing about the impacts that your project will have on their departments. What is your best response?

1. Do nothing
2. Analyze and report to each manager the impact your project will have on their departments in terms of time and resources required and the relative enterprise priority of your project
3. Inform the managers that the project sponsors already considered this impact when they decided to implement the project
4. Put in advance requests for resources from each department

Q6. A project manager knows that she can delay the start of certain activities within the project schedule to coincide with the mitigation of a known risk. She knows exactly the work and duration needed, should the risk event occur. She is confident that the finish date will not be impacted by the time delay. Which of the following aspects of schedule development has the project manager used in this situation?

1. She has relied on her certainty that, for risk planning purposes, assumptions are considered to be true, real or certain.
2. GERT probability factors provide her with certainty that there will be activities in the current schedule that will not be performed at all.
3. Her float calculations have revealed those activities that allow sufficient time for the inserted activities.
4. The project manager’s risk management plan was to build in buffer time to all the project activities during schedule development in order to cover any risk event occurrence

Q7. The communications management plan for the project has been completed and approved by the customer when a major stakeholder requests that the project manager issue reports on the amount o testing done throughout the life of the project. However, testing is only a minor aspect of the quality control plan. It would be BEST for the project manager to:

1. Issue the report, as this is a major stakeholder. Her needs would have been included in the staffing management plan.
2. Not issue the report. Project resources should be expended on communication information that contributes to success.
3. Request details of the information the stakeholder needs in the report. Provide that information to those handling the quality control function on the project.
4. Have the stakeholders meet with the project sponsor to get the sponsor’s agreement that project funds should be expended on this effort.

Q8. Which of the following BEST describes when additional risk responses are documented?

1. When you are in the Plan Risk Management process
2. When an unknown risk occurs
3. When the impact of a known risk event is more significant than expected
4. When a risk due to happen multiple times on a project does not occur the first time it is expected.

Q9. As a result of your analysis of the risks on the project, you have decided to remove a team member from the project team in order to decrease the overall project risk. What is this an example of?

1. Transference
2. Resource analysis
3. Avoidance
4. Acceptance

Q10. The plan–do–check–act cycle is defined and modified by Shewhart & Deming. It is a four–step model for carrying out change and improving processes. In these four stages, which stage involves the evaluation of improvement?

1. Do
2. Check
3. Plan
4. Act