Project Initiation and Selection MCQs
Project Initiation and Selection MCQs
These Project Initiation and Selection multiple-choice questions and their answers will help you strengthen your grip on the subject of Project Initiation and Selection. You can prepare for an upcoming exam or job interview with these Project Initiation and Selection MCQs.
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1: What does ARR stand for ?
A. Accounting Rate of Return
B. Annual Recurring Revenue
C. Both a and b
D. None of these
2: A tool that uses a branching structure to map out decision points and________, including uncertain events are known decisions.
A. Consequences
B. Decision Tree
C. Both a and b
D. None of these
3: An increase in the price of goods and services without any corresponding increase in quality or functionality is known as_____.
A. Inflation
B. Decrease
C. Disinflation
D. Internal Rate of Return
4: The discount rate that results in an NPV (net present value) equal to zero is known as ?
A. Internal Rate of Return
B. Net Present Value
C. Payback Period
D. Profitability Index
5: The sum of the discounted cash flows (DCFs) over the estimated life of the project is known as Net Present Value
A. True
B. False
6: The number of time periods (e.g., years) needed to recover the cost of the project is known as ?
A. Payback Period
B. Profitability Index
C. Real Option
D. None of these
7: The ratio of discounted future returns divided by the initial investment is known as ?
A. Payback Period
B. Profitability Index
C. Real Option
D. None of these
8: ________ is a contract giving the owner the right (but not the obligation) to purchase a good at a stated price sometime in the future.
A. Payback Period
B. Profitability Index
C. Real Option
D. None of these
9: ______ is also known as tollgate.
A. Stage Gate
B. Strategic Project
C. Strike Price
D. Utility Project
10: A type of project supporting the long-term viability of an organization and its stated mission is known as ?
A. Stage Gate
B. Strategic Project
C. Strike Price
D. Utility Project
11: The specified price of a good in a real option contract is known as ?
A. Stage Gate
B. Strategic Project
C. Strike Price
D. Utility Project
12: Utility Project is a type of project with high risk serving to deteriorate the effectiveness and/or efficiency of an organization by affecting the strategic goals of the organization.
A. True
B. False
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Project Initiation and Selection MCQs
