Week 2 Quiz
A disadvantage of using the discounted cash flow method (or net present value) for
selecting projects is that it ignores all non-monetary factors associated with the
project
(@) True
() False
Previous Page m Page 1 of 2
Question 2 (1 point) ' Saved
A disadvantage of using scoring models instead of financial models for selecting
projects is that they cannot include the project's profitability.
() True
() False
Question 3 (1 point) ' Saved
A Project Manager does not need to understand why a project was funded because
s/he did not initiate the project
() True
(@) False
Question
4 (1 point) ' Saved
If the Net Present Value of a project is positive, then the project is profitable
@ True
Q False
, A Question 5 (3 points) Retake question ' Saved
A four year project is forecasted to have the following net cash inflows of $25,000;
$30,000; $35,000; and $40,000 in the next four years. It will cost $80,000 to
implement the project, payable at the beginning of the project. If the required rate of
return is 0.2, conduct a discounted cash flow calculation to determine the NPV.
() 520
@ 1211.42
O 1212.41
Q 1210.10
A Question 6 (2 points) Retake question + Saved
A company wants to expand its locations. It has identified 3 possible locations. Use a
weighted scoring model to analyze the 3 potential locations. The relative weights for
different criteria and the scores are given below. A score of 1 represents unfavorable,
2 satisfactory, and 3 favorable. Based on the information, identify the best location.
Locations
Criterion Weight Location 1 Location 2 Location 3
Labor cost 35 1 2 3
Labor productivity 25 2 3 1
Labor Supply 30 2 1 3
Infrastructure 10 3 3 2
Q Location 1
Q Location 2
@ Location 3
A disadvantage of using the discounted cash flow method (or net present value) for
selecting projects is that it ignores all non-monetary factors associated with the
project
(@) True
() False
Previous Page m Page 1 of 2
Question 2 (1 point) ' Saved
A disadvantage of using scoring models instead of financial models for selecting
projects is that they cannot include the project's profitability.
() True
() False
Question 3 (1 point) ' Saved
A Project Manager does not need to understand why a project was funded because
s/he did not initiate the project
() True
(@) False
Question
4 (1 point) ' Saved
If the Net Present Value of a project is positive, then the project is profitable
@ True
Q False
, A Question 5 (3 points) Retake question ' Saved
A four year project is forecasted to have the following net cash inflows of $25,000;
$30,000; $35,000; and $40,000 in the next four years. It will cost $80,000 to
implement the project, payable at the beginning of the project. If the required rate of
return is 0.2, conduct a discounted cash flow calculation to determine the NPV.
() 520
@ 1211.42
O 1212.41
Q 1210.10
A Question 6 (2 points) Retake question + Saved
A company wants to expand its locations. It has identified 3 possible locations. Use a
weighted scoring model to analyze the 3 potential locations. The relative weights for
different criteria and the scores are given below. A score of 1 represents unfavorable,
2 satisfactory, and 3 favorable. Based on the information, identify the best location.
Locations
Criterion Weight Location 1 Location 2 Location 3
Labor cost 35 1 2 3
Labor productivity 25 2 3 1
Labor Supply 30 2 1 3
Infrastructure 10 3 3 2
Q Location 1
Q Location 2
@ Location 3
