Lecture 2- Project Initiating

Question 1

Name the numerical methods to project selection

Answer 1

Payback Period, Net Present value, ROI, weighted and unweighted selection

Question 2

What is the formula for ROI?

Answer 2

(Total benefits-Total Cost)/Total Cost

Question 3

What is the purpose of a business case?

Answer 3

To provide justification for investing in a project

Question 4

Name some components of the business case

Answer 4

Background & Business Objective
Current situation and problem/opportunity statement
Critical assumptions and constraints
Preliminary project requirements
Budget Estimate & Preliminary Financial Analysis
Schedule estimate

Question 5

What is a project charter?

Answer 5

a formal short document that states a project exists and provides project managers with written authority to begin work.