PROJECT MANAGEMENT CORE EXAM SET 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔Easy to use - ✔✔The model is not difficult to learn and understand in a relatively
short time; provides results readily understandable to the user.. Pg 31
✔✔Low Cost - ✔✔Cost to run the model is economical relative to scale (budget) of
project Pg 31
✔✔Comparable - ✔✔The model should be usable across a multitude of projects, and
not be project specific. Pg 31
✔✔Non-numeric project selection models - ✔✔A process of selecting projects; not
limited to traditional numeric performance measures; includes Competitive Necessity,
Operating Necessity, Sacred Cow, and Checklist.
✔✔Return on Investment (ROI) - ✔✔(NET PROFIT / COST OF INVESTMENT) * 100
Pg 32
✔✔Competitive Necessity Model - ✔✔A process of selecting a project based upon
whether implementing the project will ensure the viability of the company in the
competitive market.
✔✔Operating Necessity Model - ✔✔A process of selecting a project based upon if it will
ensure ongoing operations.
✔✔Sacred Cow - ✔✔Projects are suggested by senior leadership or a powerful
constituent of the company often created to satisfy the expectations of the leader with
little regard for the project's viability or contribution to strategic or operational needs. Pg
32
✔✔Checklist Model - ✔✔This method uses a series of questions to evaluate each
potential project. Each project would be analyzed using the same set of questions, and
then the answers to the questions would be compared to determine whether a project is
accepted or rejected.
✔✔weighted factor scoring - ✔✔This scoring models requires senior management to
assign a weight to each criterion, which places some emphasis on selected criteria
when calculating the total project score. Pg 34
✔✔time value of money - ✔✔Money is worth more to an organization now than in the
future. Pg 35
, ✔✔payback period - ✔✔Calculates the amount of time required to earn back the cost of
doing the project. Pg 36
✔✔Internal rate of return (IRR) - ✔✔To calculate future cash flows using time and
interest rate; evaluates potential projects as if they were financial investments. Pg 37
✔✔net present value (NPV) - ✔✔To calculate whether revenue tomorrow is greater than
costs today; A financial measure of the total future benefits of a project minus the costs
of the project. Pg 38
✔✔future net cash flows - ✔✔Amount a company expects to realize from a project
before that project begins. Pg 38
✔✔Project Process Groups - ✔✔Initiating, Planning/Executing/Monitoring and
Controlling, Closing
✔✔Project Phases - ✔✔Defining, Planning, Executing, and Closing
✔✔Work Breakdown Structure - ✔✔a key document that will be used for cost estimates,
time estimates, risk identification, and resource assignment. Pg 45
✔✔collecting customer requirements - ✔✔The process of gathering information from the
customer and stakeholders in order to define the high level project outcomes Pg 48
✔✔specifications - ✔✔used to describe customer requirements that identify precise and
measurable characteristics of the project outcome Pg 48
✔✔project sponsor - ✔✔The person in the project organization who has authority to
expend resources for projects. Pg 48
✔✔Integration Management Plan - ✔✔Documents how the various processes and
planning areas will be kept in sync throughout the project life cycle. Pg 49
✔✔Types of Project Management Plans - ✔✔Integration, Scope, Risk, Procurement,
Communications, Human Resources, Stakeholder, Quality, Cost, Time, Configuration,
Change, Process Improvement, Requirements
✔✔Stakeholder Management Plan - ✔✔Explains how stakeholders will be identified
along with their level of interest in the project and influence over the project. This is
closely tied to the communications plan since stakeholders will need varying levels and
frequency of information. Pg 49
QUESTIONS AND SOLUTIONS RATED A+
✔✔Easy to use - ✔✔The model is not difficult to learn and understand in a relatively
short time; provides results readily understandable to the user.. Pg 31
✔✔Low Cost - ✔✔Cost to run the model is economical relative to scale (budget) of
project Pg 31
✔✔Comparable - ✔✔The model should be usable across a multitude of projects, and
not be project specific. Pg 31
✔✔Non-numeric project selection models - ✔✔A process of selecting projects; not
limited to traditional numeric performance measures; includes Competitive Necessity,
Operating Necessity, Sacred Cow, and Checklist.
✔✔Return on Investment (ROI) - ✔✔(NET PROFIT / COST OF INVESTMENT) * 100
Pg 32
✔✔Competitive Necessity Model - ✔✔A process of selecting a project based upon
whether implementing the project will ensure the viability of the company in the
competitive market.
✔✔Operating Necessity Model - ✔✔A process of selecting a project based upon if it will
ensure ongoing operations.
✔✔Sacred Cow - ✔✔Projects are suggested by senior leadership or a powerful
constituent of the company often created to satisfy the expectations of the leader with
little regard for the project's viability or contribution to strategic or operational needs. Pg
32
✔✔Checklist Model - ✔✔This method uses a series of questions to evaluate each
potential project. Each project would be analyzed using the same set of questions, and
then the answers to the questions would be compared to determine whether a project is
accepted or rejected.
✔✔weighted factor scoring - ✔✔This scoring models requires senior management to
assign a weight to each criterion, which places some emphasis on selected criteria
when calculating the total project score. Pg 34
✔✔time value of money - ✔✔Money is worth more to an organization now than in the
future. Pg 35
, ✔✔payback period - ✔✔Calculates the amount of time required to earn back the cost of
doing the project. Pg 36
✔✔Internal rate of return (IRR) - ✔✔To calculate future cash flows using time and
interest rate; evaluates potential projects as if they were financial investments. Pg 37
✔✔net present value (NPV) - ✔✔To calculate whether revenue tomorrow is greater than
costs today; A financial measure of the total future benefits of a project minus the costs
of the project. Pg 38
✔✔future net cash flows - ✔✔Amount a company expects to realize from a project
before that project begins. Pg 38
✔✔Project Process Groups - ✔✔Initiating, Planning/Executing/Monitoring and
Controlling, Closing
✔✔Project Phases - ✔✔Defining, Planning, Executing, and Closing
✔✔Work Breakdown Structure - ✔✔a key document that will be used for cost estimates,
time estimates, risk identification, and resource assignment. Pg 45
✔✔collecting customer requirements - ✔✔The process of gathering information from the
customer and stakeholders in order to define the high level project outcomes Pg 48
✔✔specifications - ✔✔used to describe customer requirements that identify precise and
measurable characteristics of the project outcome Pg 48
✔✔project sponsor - ✔✔The person in the project organization who has authority to
expend resources for projects. Pg 48
✔✔Integration Management Plan - ✔✔Documents how the various processes and
planning areas will be kept in sync throughout the project life cycle. Pg 49
✔✔Types of Project Management Plans - ✔✔Integration, Scope, Risk, Procurement,
Communications, Human Resources, Stakeholder, Quality, Cost, Time, Configuration,
Change, Process Improvement, Requirements
✔✔Stakeholder Management Plan - ✔✔Explains how stakeholders will be identified
along with their level of interest in the project and influence over the project. This is
closely tied to the communications plan since stakeholders will need varying levels and
frequency of information. Pg 49
