PM Test Center » project selection http://pmtestcenter.com FREE daily project management test questions for PMP®, CAPM®, and Project+ exams! Fri, 30 Jul 2010 04:01:03 +0000 en hourly 1 http://wordpress.org/?v=3.0 Accelerated depreciation http://pmtestcenter.com/accelerated-depreciation/?utm_source=rss&utm_medium=rss&utm_campaign=accelerated-depreciation http://pmtestcenter.com/accelerated-depreciation/#comments Mon, 26 Apr 2010 04:01:32 +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

If you are reading this via email, please click here for the answer.

]]> 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 Sat, 24 Apr 2010 04:01:16 +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

If you are reading this via email, please click here for the answer.

]]> 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 Fri, 23 Apr 2010 04:01:24 +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

If you are reading this via email, please click here for the answer.

]]> 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 Tue, 02 Mar 2010 05:01:51 +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

If you are reading this via email, please click here for the answer.

]]> http://pmtestcenter.com/benefit-cost-ratio-bcr/feed/ 0