Question 1

You are asked to decide which project is a better investment. Project X takes 3 years to complete with a Net Present Value of $125,000 and Project Y takes 2 years to complete with a Net Present Value of $100,000. Which will you choose?

A) Both projects
B) Project X only
C) Either project
D) Project Y only

Question 2

You are a certified PMP working as a project manager in a company. One of your colleagues is planning to take the PMP exam too, and asks for your guidance on preparation. What should you do?

A) Give them a few instructions and let them work out the rest
B) Say you’re too busy to help them – after all, it’s true
C) Give them whatever guidance you can provide based on your experience
D) Tell them to go to the PMI website and find the information they want

Question 3

What is the Cost Performance Index of a project with a PV of $795,000, EV of $850,000, and AC of $950,000?

A) 1.12, you are over budget
B) 0.89, you are over budget
C) 2.05, you are under budget
D) 0.75, you are under budget

Question 4

Return on Investment (ROI) is the percentage return we get from investing in something. Your project cost the company $200,000 to complete. That project returns a benefit of $240,000. The Return on Investment (ROI) would be:

A) 20%
B) 24%
C) 240%
D) 16%

Question 5

The Benefit Cost Ratio is used to compare the benefits to the costs for a project. As a project manager working for your company which one of the following projects will you recommend based on the BCRs below?

A) Project X at 0.75
B) Project Y at 1.20
C) Project R at 1.85
D) Project W at 2.05