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Here are 20 multiple-choice questions (MCQs) for Project Appraisal and Management:
1. What is the first step in project appraisal?
A) Project implementation
B) Project identification
C) Project monitoring
D) Project evaluation
Answer: B) Project identification
2. Which of the following is NOT a primary objective of project appraisal?
A) Ensuring project feasibility
B) Maximizing stakeholder conflicts
C) Assessing project profitability
D) Determining project viability
Answer: B) Maximizing stakeholder conflicts
3. Which financial metric is used to assess a project's profitability over its lifespan?
A) Net Present Value (NPV)
B) Return on Investment (ROI)
C) Internal Rate of Return (IRR)
D) Payback Period
Answer: A) Net Present Value (NPV)
4. What does the Payback Period indicate in project appraisal?
A) The time it takes to break even on the project investment
B) The time it takes for project completion
C) The time it takes to generate profit
D) The time it takes to identify project risks
Answer: A) The time it takes to break even on the project investment
5. Which of the following is NOT considered a qualitative factor in project appraisal?
A) Market demand
B) Economic conditions
C) Environmental impact
D) Financial ratios
Answer: D) Financial ratios
6. What does the Internal Rate of Return (IRR) measure in project appraisal?
A) The discount rate at which NPV equals zero
B) The total cash inflow of the project
C) The project's risk level
D) The project's sensitivity to market changes
Answer: A) The discount rate at which NPV equals zero
7. Which technique involves estimating the expected future cash flows of a project and
discounting them back to their present value?
A) Cost-Benefit Analysis
B) Sensitivity Analysis
C) Discounted Cash Flow (DCF) Analysis
D) Scenario Analysis
Answer: C) Discounted Cash Flow (DCF) Analysis
8. What is the primary purpose of a sensitivity analysis in project appraisal?
A) To assess the impact of uncertainty on project outcomes
B) To determine project stakeholders
C) To calculate project profitability
D) To identify project risks
Answer: A) To assess the impact of uncertainty on project outcomes
9. Which of the following is NOT a stage in project management?
A) Planning
B) Execution
C) Appraisal
D) Monitoring and Control
Answer: C) Appraisal
10. What is the critical path in a project network diagram?
A) The longest path through the project network
B) The shortest path through the project network
C) The path with the least number of tasks
D) The path with the most number of dependencies
Answer: A) The longest path through the project network
11. What is the purpose of a Work Breakdown Structure (WBS) in project management?
A) To allocate project resources
B) To estimate project costs
C) To define project scope and tasks
D) To monitor project progress
Answer: C) To define project scope and tasks
12. Which project management technique involves dividing the project into smaller,
more manageable phases?
A) Critical Path Method (CPM)
B) Program Evaluation and Review Technique (PERT)
C) Agile Methodology
D) Project Phasing
Answer: D) Project Phasing
13. What does the acronym PERT stand for in project management?
A) Program Evaluation and Risk Timing
B) Project Evaluation and Review Technique
C) Program Efficiency and Resource Tracking
D) Project Execution and Resource Tracking
Answer: B) Project Evaluation and Review Technique
14. Which project management tool is used to track and visualize the dependencies
between project tasks?
A) Gantt chart
B) WBS dictionary
C) RACI matrix
D) Network diagram
Answer: D) Network diagram
15. What is the purpose of a risk register in project management?
A) To allocate project resources
B) To track project progress
C) To identify, assess, and prioritize project risks
D) To create a project timeline
Answer: C) To identify, assess, and prioritize project risks
16. Which project management process involves determining the project objectives,
deliverables, and timelines?
A) Initiating
B) Planning
C) Executing
D) Monitoring and Controlling
Answer: B) Planning
17. Which of the following is NOT a typical constraint in project management?
A) Scope
B) Time
C) Quality
D) Budget
Answer: C) Quality
18. What does the acronym SMART stand for in the context of project management?
A) Specific, Measurable, Achievable, Relevant, Time-bound
B) Strategic, Manageable, Attainable, Realistic, Timely
C) Simple, Measurable, Achievable, Relevant, Timely
D) Specific, Manageable, Appropriate, Relevant, Timely
Answer: A) Specific, Measurable, Achievable, Relevant, Time-bound
19. Which project management technique is used to identify all the stakeholders
involved in a project and their roles and responsibilities?
A) Stakeholder Analysis
B) Risk Management
C) Quality Assurance
D) Resource Allocation
Answer: A) Stakeholder Analysis
20. What is the purpose of project closure in project management?
A) To allocate project resources
B) To monitor project progress
C) To formally complete the project and hand it over to the client
D) To update the project plan
Answer: C) To formally complete the project and hand it over to the client