Try PMP - Project Management Professional

Q1.A utility is choosing between three investment proposals for a metering programme. Proposal A has a net present value of minus 0.3 million and a payback period of two years. Proposal B has a net present value of plus 1.8 million, an internal rate of return of 12% and a payback period of five years. Proposal C has a net present value of plus 0.6 million, an internal rate of return of 8% and a payback period of four years. Which proposal should the project manager recommend?

• A.Proposal B, because its net present value and internal rate of return are both the highest of the viable options.
• B.Proposal A, because the shortest payback period returns the money fastest and reduces exposure.
• C.Proposal C, because it balances a positive net present value against a shorter payback than Proposal B.
• D.Proposal A, combined with Proposal C, because together they recover the investment sooner than Proposal B alone.

Domain: Process

Q2.A predictive rail signalling project runs in four phases with a gate at the end of each one. The project manager wants confidence that the agreed end state is still the one the organisation wants. When should the vision and its success criteria be re-confirmed?

• A.At each phase gate, alongside the go or no-go decision.
• B.Only at closure, when the benefits are measured.
• C.Only if a stakeholder raises a concern about the direction of the project.
• D.Monthly, at the same time the cost report is produced.

Domain: People

Q3.A predictive records digitisation project has been forecasting a breach of its schedule tolerance for three weeks. The project manager held the news back while the team attempted a recovery, planning to report it at the phase gate in a fortnight if recovery failed. The agreed threshold requires escalation within two working days of a forecast breach. What should the project manager do?

• A.Continue the recovery attempt and report at the gate, since a problem that gets resolved needs no escalation.
• B.Escalate now, setting out the forecast breach, the recovery attempted so far and the options, and accept that the escalation is already late.
• C.Ask the steering committee chair informally whether the phase gate is soon enough.
• D.Include the breach in the next weekly status report rather than using the escalation path.

Domain: Business Environment

Q4.An energy company is consolidating four data centres into one, and the sponsor has said the business case rests on a large reduction in energy consumption that will be reported at handover. Kwame is writing the plan and the old sites are still running today. What should he do?

• A.Capture the current energy consumption of the four sites now as a defined information requirement, before any site is decommissioned.
• B.Estimate the previous consumption at handover from the equipment vendors' published specifications.
• C.Ask the sponsor to remove the energy reduction claim from the business case to avoid a measurement dispute.
• D.Add energy reporting to the closure activities so it is owned by the operations team after handover.

Domain: Process

Q5.Marcus has circulated a document he calls the project management plan for a factory automation project. It contains a Gantt chart, a cost estimate and a list of who is on the team. The sponsor asks whether the plan is complete before the funding gate next week. How should Marcus respond?

• A.It is not complete: it still needs the subsidiary management plans and the approved scope, schedule and cost baselines.
• B.It is complete once the risk register and issue log are attached to it.
• C.It is complete, because a schedule, a budget and a team list are what the sponsor funds.
• D.It is complete for the gate, and the remaining detail can be added after execution starts.

Domain: Process