0
Q:

# The payback period can become an important issue when a large scope project is developed over several years. Maureen has been assigned the responsibility of calculating the payback period for her project that is to be completede in 3 years. The internal rate of return(IRR) is 7% and the annual savings will be $800,000 per year. The total cost is$4,000,000 and the rate of return during this time period is 3%. What is the payback period of Maureen's project?

 A) 3 years B) 4 years C) 5 years D) 13.3 years

Explanation:

The payback period is how long it takes to recoup your investment. In this example, the cost was $4,000,000 and the savings was$800,000 per year. $4,000,000/$800,000 = 5. Therefore, Answer A, B and D are incorrect.

Q:

What is the Purpose of a Project Charter?

1. Project Charter refers to a statement of objectives in a project.

2. It provides a preliminary delineation of roles and responsibilities, outlines the project objectives, identifies the main stakeholders, and defines the authority of the project manager.

3. It serves as a reference of authority for the future of the project. The terms of reference are usually part of the project charter.

9
Q:

A project in PMP can be defined as a :

 A) Permanent endeavor that produces repetitive outputs B) Temporary endeavor undertaken to create a unique product, service, or result C) Permanent endeavor undertaken to create a unique product, service, or result D) Temporary endeavor that produces repetitive outputs

Answer & Explanation Answer: B) Temporary endeavor undertaken to create a unique product, service, or result

Explanation:

Filed Under: PMP Certification

6 279
Q:

Typically not referred to as a buffer type in critical chain project management is ______.

 A) Free Buffer B) Resource Buffer C) Project Buffer D) Feeding Buffer

Explanation:

Filed Under: PMP Certification

5 582
Q:

Decomposing tasks into smaller activities can be helpful in reducing the amount of stress associated with overwhelmingly large milestones. What is a feature of the hierarchical nature of the WBS?

 A) A WBS hierarchy prevents duplication B) A WBS cab be rolled up or collapsed to provide information at the appropriate level for a particular audience. C) The decomposition of tasks provides a detailed planning tool D) The depth of a WBS is restricted to three levels, which avoids overplanning

Answer & Explanation Answer: B) A WBS cab be rolled up or collapsed to provide information at the appropriate level for a particular audience.

Explanation:

Answer A is incorrect because the WBS hierarchy does not prevent duplication by itself. Answer C is incorrect because a WBS is focused on deliverables and components or work packages and not on tasks. Answer D is incorrect because a WBS can be sized appropriately to the project size with as many levels as necessary.

Filed Under: PMP Certification

0 1761
Q:

Why are CPM, GERT, and PERT not considered sufficient to create a project schedule?

 A) All three are tools and techniques of schedule development, not the actual schedule B) As mathemetical analysis tools, they simply provide the dates that are posible, and do not consider resource pool limitations C) They are sufficient. Each calculates early and late start and finish dates for each activity D) They are Monte Carlo techniques used to provide what-if analysis for adverse external factors on a project

Answer & Explanation Answer: B) As mathemetical analysis tools, they simply provide the dates that are posible, and do not consider resource pool limitations

Explanation:

Answer A is tempting because it is true by definition, but Answer B is correct because it properly answers the question, in that these techniques do not take into account resource pool constraints. Answer C is incorrect because it provides possible early and late start and finish dates, but not the actual schedules. Answer D is incorrect because none of the the three are simulation techniques.

Filed Under: PMP Certification

0 2703
Q:

Why are risk tolerances and thresholds important to identify in the risk management Plan?

 A) Tolerances and thresholds, when documented, can help to define the target by which the project team can measure the effectiveness of the risk response plan execution B) Tolerances and thresholds help to define how often the risk management process will be performed C) Tolerances and thresholds determine what tools and data sources will be used in risk management D) Tolerances and thresholds provide the basis for costing the risk management process as well as defining how risk activities will be recorded

Answer & Explanation Answer: A) Tolerances and thresholds, when documented, can help to define the target by which the project team can measure the effectiveness of the risk response plan execution

Explanation:

Answer B defines the timing that should be addressed in the risk management plan. Answer C defines the methodology that should be identified in a risk management plan. Answer D touches on the budgeting and tracking that should be defined in the risk management plan.

Filed Under: PMP Certification

0 1591
Q:

Iam looking to estimate the cost on a project, but I don't want to spend a lot of time on a  detailed analysis. I really want a ballpark figure. What options do I have?

 A) None - Cost estimating requires details to be accurate B) Use the cost of similar projects C) Use a rule-of-thumb or per-square-foot estimate D) Add up the costs on the WBS

Explanation:

Although it is less accurate than adding up individual costs from the WBS, it is less time consuming. The trade-off is accuracy. Answer A is incorrect because to do a more accurate cost estimate, you need to delve into details. Answer C is tempting also, and possible, except we don't really know if the project in question can use perametric modeling . Answer D is incorrect because it takes the most time, but it is most accurate.

Filed Under: PMP Certification

0 1931
Q:

On a systems development project, Richard needs two programmers. He knows John and Smith were able to create a program in 40 days similar to the one he wants to create on his project. He decides to use 40 days as his estimate. This is an example of what type of estimating?

 A) Parametric modeling B) Analogous C) Rule of thumb D) Fixed Rate