Introduction

Question 1

IRR (Internal Rate of Return)

Answer 1

IRR is the annual rate of growth an investment is expected to generate.

IRR is ideal for analyzing capital budgeting projects to understand and compare potential rates of annual return over time.

Question 2

Operation

Answer 2

Regular operational activities that help to sustain the business.

Question 3

Organization

Answer 3

Dividing work into departments includes the allocation of authority, responsibility, and duties.

A group of individuals organized to work for some purpose or mission.

Question 4

Payback Period

Answer 4

Length of time to payback investment

Question 5

Performing Organization

Answer 5

The organization that is performing the project

Question 6

Portfolio Management

Answer 6

Helps in identifying, authorizing, prioritizing, managing, and controlling projects, programs, and other related work for attaining business objectives.

Question 7

Process

Answer 7

Set of related tasks performed to manage a certain aspect of a project such as a cost

Question 8

Program

Answer 8

A group of related projects grouped together to gain an advantage in the control of the projects

Question 9

Program Management

Answer 9

The management of a program and all projects within the program to help achieve a strategic goal.

Question 10

Project Management Knowledge Areas

Answer 10

10 Management Areas

• Integration
• Scope
• Schedule
• Cost
• Quality
• Resource
• Communications
• Risk
• Procurement
• Stakeholder

Question 11

Project Phase

Answer 11

Set of logically related activities that usually complete one or more major deliverables for a project.

Question 12

Closing Process Group

Answer 12

The final stage of a project.

Includes formal acceptance

Question 13

Executing Process Group

Answer 13

Starts after the planning phase

Consists of the processes to complete the work defined in the project management plan to accomplish the project’s requirements

Question 14

Initiating Process Group

Answer 14

Occurs at the beginning of a project

Determines nature and scope of the project development

It is critical that this stage is performed well

Question 15

Monitoring and Controlling Process Group

Answer 15

The processes that observe project execution

The goal is to identify potential problems and apply corrective action where necessary

Question 16

Project Management Process Group

Answer 16

Displays the progress for the process group activities:

Initiating
Planning
Executing
Monitoring and Controlling
Closing

The output of one process group becomes the input for the next

Question 17

Net Present Value (NPV)

Answer 17

Considers the cash inflows of a project and determines the dollar amount it is worth today

Question 18

Project Processes

Answer 18

A sequence of interdependent and linked procedures consuming one or more resources to convert inputs into outputs

Outputs become inputs for the next procedure

Question 19

Project Life Cycle

Answer 19

Sequential project phases that are defined by the organization and control needs of the stakeholders, the nature of the project, and the application area

Question 20

Project

Answer 20

A temporary endeavor to create a unique product, service, or result

A management environment created to deliver one or more business products aligned to a specific business case