Questions (1-4):
Using the interest rate 10%, please answer the following questions.
Profile I
Profile II
(1) Present worth for the above cash flow (Profile I) is close to:
a) $720 b) $710 c) $622 d) $172
(2) Future worth for the above cash flow (Profile I) is close to:
a) $3897 b) $1548 c) $1376 d) $1161
(3) Present worth for the above cash flow (Profile II) is:
a) 5.2173X b) 4.0134X c) 2.8932X d)3.7908X
(4) If cash flow Profiles I and II are equivalent, the value of X is close to:
a) $101 b) $110 c) $190 d) $187
Questions (5-8):
(5) The purpose of planning is:
a) Defining work tasks and their logic relations b) Cost monitoring
c) Resource leveling d) Precedence network diagram
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(6) The main advantage of a matrix organizational structure is:
a) High management and administration cost
b) Better communications
c) Risk operating rules
d) Absolute authority to project manager
(7) Lump-sum contract means:
a) Project price is fixed
b) Project price is calculated percentage
c) Owner pays direct cost, plus fixed percentage
d) Owner pays direct cost, indirect cost plus fixed percentage.
(8) Which statement with respect to the project life cycle is FALSE:
a) Project cost and staffing level begin slowly at the beginning of the project and decrease at a faster
rate at the end of the project
b) The cost of changes is lowest at the beginning of the project and increases as the project
progresses.
c) Stakeholder influence, risk and uncertainty are greatest at the beginning of the project and
decrease as the project progresses
d) Stakeholder influence, risk and uncertainty are lowest at the beginning of the project and
increase as the project progresses.
Questions (9-11):
An investor can make 3 end of year payments of $15,000, starting this year, which will generate a
receipt of $10,000 at the end of year 4 and will increase annually by $2500 for the following 4 years. The
investment will earn a return of 10%.
(9) The present worth of the investment is close to:
a) $7456 b) $4066 c) $15704 d) $120000
(10) The uniform annual worth of the cash flow is close to:
a) $1397 b) $2942 c) $762 d) $22488
(11) At year 5, the entire investment is close to:
a) $6549 b) $15414 c) $12500 d) $8167
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