PM Test Center » project selection http://pmtestcenter.com FREE daily project management test questions for PMP®, CAPM®, and Project+ exams! Fri, 10 Feb 2012 05:01:00 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Accelerated depreciation http://pmtestcenter.com/accelerated-depreciation?utm_source=rss&utm_medium=rss&utm_campaign=accelerated-depreciation http://pmtestcenter.com/accelerated-depreciation#comments Sun, 18 Dec 2011 05:01:32 +0000 Gabe Young http://pmtestcenter.com/?p=517

Megan is working with her finance department to determine depreciation for a warehouse forklift that was purchased. She is told that accelerated depreciation will be used. If the forklift cost $50,000 and Megan wants to spread the depreciation over five years, which of the following will the first year most likely be?

A. $5,000
B. $8,000
C. $10,000
D. $15,000

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]]> http://pmtestcenter.com/accelerated-depreciation/feed 0 Net present value (NPV) http://pmtestcenter.com/net-present-value-npv?utm_source=rss&utm_medium=rss&utm_campaign=net-present-value-npv http://pmtestcenter.com/net-present-value-npv#comments Fri, 16 Dec 2011 05:01:16 +0000 Gabe Young http://pmtestcenter.com/?p=509

While determining which project to pursue, your management decides to use net present value (NPV) as the key criteria. If the NPV for Project X is 12,000 and the NPV for Project Y is 15,000, which project should be chosen?

A. Project X
B. Project Y
C. Either can be chosen since the numbers are so close
D. NPV cannot be used to chose projects

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]]> http://pmtestcenter.com/net-present-value-npv/feed 1 Internal rate of return (IRR) http://pmtestcenter.com/internal-rate-of-return-irr?utm_source=rss&utm_medium=rss&utm_campaign=internal-rate-of-return-irr http://pmtestcenter.com/internal-rate-of-return-irr#comments Thu, 15 Dec 2011 05:01:24 +0000 Gabe Young http://pmtestcenter.com/?p=505

While determining which project to pursue, your management decides to use internal rate of return (IRR) as the key criteria. If the IRR for Project X is 10% and the IRR for Project Y is 8%, which project should be chosen?

A. Project X
B. Project Y
C. Either can be chosen since the numbers are so close
D. IRR cannot be used to chose projects

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]]> http://pmtestcenter.com/internal-rate-of-return-irr/feed 0 Benefit cost ratio (BCR) http://pmtestcenter.com/benefit-cost-ratio-bcr?utm_source=rss&utm_medium=rss&utm_campaign=benefit-cost-ratio-bcr http://pmtestcenter.com/benefit-cost-ratio-bcr#comments Mon, 24 Oct 2011 04:01:51 +0000 Gabe Young http://pmtestcenter.com/?p=238

There are two projects being evaluated but only one can be undertaken. Your finance department decides to use Benefit Cost Ratio (BCR) to help make the decision. Before they even perform the BCR, they inform you that a possible outcome is that neither is a good fit for the organization and you may have to find another solution. After completing their analysis they determine that Project A has a BCR of 0.8 and Project B has a BCR of 0.6. Based on their BCR scores, you should:

A. Choose Project A
B. Choose Project B
C. Choose neither and seek alternative projects
D. Ask for more information to make a decision

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]]> http://pmtestcenter.com/benefit-cost-ratio-bcr/feed 0 Opportunity cost http://pmtestcenter.com/opportunity-cost?utm_source=rss&utm_medium=rss&utm_campaign=opportunity-cost http://pmtestcenter.com/opportunity-cost#comments Sun, 25 Sep 2011 04:01:21 +0000 Gabe Young http://pmtestcenter.com/?p=162

During the project selection stage, you learn that the value of Project A is $100,000 and the value of Project B is $75,000. Ultimately, Project A was chosen. As a result, the opportunity cost of that decision is:

A. $100,000
B. $75,000
C. $25,000
D. $175,000

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