MOC EXAM 25Q Agile 88% 151->175

Question 1

You are asked to select a new project for your company. Project X will take 3 years to complete with Net Present Value of $101,000. Project Y will take 2 years to complete with Net Present Value of $95,000. Which should you select?
* Project Y
* Project X
* Both projects
* Either project

Answer 1

💡 The NPV calculation takes the number of years into consideration already,
making Project X the right choice with the higher NPV of $101,000. NPV= (Cash flows)/( 1+r)^t

Question 2

One or more deliverables are produced at the end of a project phase. Multiple phases make up a project lifecycle. What is the completion of a project phase also called?
* Kill Points
* Task Points
* Feature Items
* Release Items

Answer 2

The kill point is the stage gate or phase review.
At the review, the progress of the project is evaluated and a decision is made whether to continue or cancel the project.

Question 3

What is the Opportunity Cost of selecting Project X over Project Y, when Project X has a NPV of $124,000 and Project Y has a NPV of $179,000?
* $40,000
* $179,000
* $124,000
* $310,000

Answer 3

The Opportunity Cost is the value of “the project not selected.”
In this case, Project X was chosen, which makes the cost of Project Y the opportunity cost of $179,000.

Question 4

You are an Agile project manager leading a new software project. During the last retrospective there was very little engagement and feedback, and the team seem to be losing interest in the work. What will you do to improve the situation?

• Hold another retrospective to try and extract more information.
• Align the project goals to each team members’ personal goals.
• Hold a vote on whether to continue the project or not.
• Get executive management involved so team members raise their engagement.

Explanation

Answer 4

If a previous Retrospective did not elicit information, holding another one would be doing the same thing but expecting a different result. Finding out each team member’s strengths and helping them do more of that work helps engagement, as does aligning their goals to those of the project. When these things are aligned people naturally work harder and care more.

Question 5

Return on Investment (ROI) is the percentage return we get from investing in something. Your project cost the company $200,000 to complete. That project returns a benefit of $240,000. The net Return on Investment (ROI) would be:

• 20%
• 24%
• 240%
• 16%

Answer 5

Return on Investment:
ROI = NET Income / Total Investment =
($240,000 - $200,000) / $200,000 x 100 = 20%

Question 6

The Benefit to Cost Ratio is used to compare the benefits to the costs for a project. As a project manager working for your company which one of the following projects will you recommend based on the BCRs below?

• Project X at 0.75
• Project Y at 1.20
• Project R at 1.85
• Project W at 2.05

Answer 6

The Benefit to Cost ratio :
BCR =Benefit / Cost.

A higher value is better,

making 2.05 the correct answer.

Question 7

A recent news article spread a rumour about a supplier who is providing services for the project you are working on. They are reportedly in the middle of a hostile takeover bid from another larger company. You need to ensure you project is able to continue. What should you do?

• Ignore the news article - they don’t know the supplier like you do
• Set a meeting and talk to executives in charge at the hostile bidder
• Talk to the vendor and find the facts
• Stop working with the vendor immediately, get another vendor to do the work

Answer 7

The best approach as a Project Manager is always “Direct, and Collaborative.” Raise the issue with the vendor directly and work out an approach to control the risk of the takeover from there.