Page 317 - Project+

17. B, D, F. The needs or demands that bring about a project include the following:

market demand, strategic opportunity/business need, customer request,
technological advances, legal requirements, environmental considerations, and
social needs. A feasibility study is conducted to determine the viability of a project,
and the business case documents the reasons for the project and the justification
for the project. Stakeholder needs may bring about a project, but their needs will

fall more specifically into one of the seven needs or demands that bring about a
project.

18. C. NPV is calculated by subtracting the total of the expected cash inflows stated in
today’s dollars from the initial investment. In this question, the initial investment is
higher than the cash flows, so the resulting NPV is less than zero, and the project
should be rejected. Discounted cash flows tell you the value of the cash flows in
today’s dollars.

19. B. This question describes the expert judgment form of project selection. The

question states the executives already read the business case analysis. The
feasibility study is a study conducted to determine the risks and potential benefits
to the project, and decision models are mathematical models that use differing
variables to determine a decision.

20. C, D. The business case analysis may include the feasibility study but should always
include the justification for the project and the alignment to the strategic plan. It’s a
good idea to also include high-level timelines and estimated budgets.

Chapter 2: Project Team Roles and Responsibilities

1. B, C. A stakeholder matrix includes the stakeholder name, department, contact
information, role on the project, needs, concerns, interests, level of involvement on
the project, level of influence over the project, and notes for your own reference. A

stakeholder matrix is an artifact.

2. A. The project sponsor authorizes the project to begin and approves and signs the
project charter.

3. C. The project coordinator assists the project manager with administrative
functions on the project.

4. B. A key responsibility of the project manager is informing the sponsor of changes,
status, issues, and conflicts on the project. The project requestor and stakeholders

should be informed as well, but an important aspect of the project manager’s role
involves informing the sponsor and keeping them updated.

5. C, D, F. The PMO provides standards and practices for the organization including
tools, templates, and governance processes.

6. B. The functional manager provides and assigns employees to work on the project.
The project manager is accountable for overseeing the work required to complete

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