FINAL SUMMATIVE ASSESSMENT 1 MODEL ANSWERS

INTEGRATED

Answers

1. D. Develop project charter process formally authorizes the project and

identifies the project manager.
2. A.
3. D. For option A, 46 months is the payback period. For option B, 44 months is
the payback period. For option C, 62 months is the payback period. For option
D, 22 months is the payback period. Building a school has the minimum
payback period.
4. A. Project A has best internal rate of return of R60K annually for an
investment of R100,000.
5. C. Identify Project Manager

6. D. A weighted average for all four projects is computed and one with highest
weighted average is selected. For project D, the weighted average is (4*2) +
(4*3) + (5*5) + (5*4). Total score for project D is 65. This is highest across all
projects.
7. D. Project D requires four quarters to payback the investments. This is the
minimum time when compared to other projects.
8. A
9. B. Payback period is eight quarters.
10. A. Cost variance is equal to Earned Value - Actual cost.

11. B. Schedule variance is equal to Earned value - Planned value.

12. D. Cost Performance Index = (Earned Value)/(Actual cost)