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PMP Exam Question Session 2
In this series we will walk through five PMP Practice Exam Questions each day – a great way to set up your morning as you prepare to pass the PMP Exam. It is also useful for the CAPM exam, as the content is very similar.
We will also figure them out together, and you’ll see the thought process behind solving these PMP exam questions.
I hope you enjoy!
Question 1
The Benefit to Cost Ratio (BCR) is the ratio of the benefits of a project relative to its costs. You are working on a project with a total cost of $200,000. That project results in a benefit of $190,000. What is the Benefit Cost Ratio?
A) 1.05
B) 0.95
C) 0.85
D) 1.15
Question 2
A recent news article spread a rumour about a supplier who is providing services for the project you are working on. They are reportedly in the middle of a hostile takeover bid from another larger company. You need to ensure you project is able to continue. What should you do?
A) Ignore the news article – they don’t know the supplier like you do
B) Set a meeting and talk to executives in charge at the hostile bidder
C) Talk to the vendor and find the facts
D) Stop working with the vendor immediately, get another vendor to do the work
Question 3
You are asked to select a new project for your company. Project X will take 3 years to complete with Net Present Value of $101,000. Project Y will take 2 years to complete with Net Present Value of $95,000. Which should you select?
A) Project Y
B) Project X
C) Both projects
D) Either project
Question 4
What is the Opportunity Cost of selecting Project X over Project Y, when Project X has a NPV of$124,000 and Project Y has a NPV of $179,000?
A) $40,000
B) $179,000
C) $124,000
D) $310,000
Question 5
The Benefit Cost Ratio or Profitability Index is commonly used to identify the most efficient projects. What does a benefit cost ratio of 1.45 imply?
A) Cost is 1.45 times the profit
B) Cost is 1.45 times the revenue
C) Profit is 1.45 times the cost
D) Revenue is 1.45 times the cost