CPP Project Initiation & Business Case Development

Question 1

Which document formally authorizes a project and grants the project manager authority to apply organizational resources?

Accepted Answer

Project Charter

Answer

The Project Charter is the document that formally authorizes the existence of a project and gives the project manager authority to use organizational resources.

Question 2

A project manager is asked to evaluate whether a proposed project is worth pursuing. Which tool BEST supports this decision by comparing expected benefits to anticipated costs?

Accepted Answer

Cost-Benefit Analysis

Answer

Cost-Benefit Analysis compares the financial and non-financial benefits of a project against its projected costs to determine if the investment is justified.

Question 3

During project initiation, a business case is developed. Which of the following is MOST important to include in a comprehensive business case?

Accepted Answer

Justification, expected benefits, and alignment to organizational strategy

Answer

A business case must justify the project investment by articulating the problem or opportunity, expected benefits, and how the project aligns with organizational strategy.

Question 4

An organization uses Net Present Value (NPV) to select between competing projects. If Project A has an NPV of $450,000 and Project B has an NPV of $320,000, which should be selected and why?

Accepted Answer

Project A, because higher NPV indicates greater value creation

Answer

A higher NPV indicates a project is expected to generate more value in today's dollars, making Project A the better financial choice.

Question 5

Which type of feasibility study focuses on whether the organization has the technical expertise, equipment, and infrastructure to deliver the proposed project?

Accepted Answer

Technical feasibility

Answer

Technical feasibility assesses whether the organization possesses or can acquire the technology, skills, and infrastructure needed to complete the project successfully.

(CPP) Certified Project Professional Practice Test

(CPP) Certified Project Professional Practice Test

CPP Project Initiation & Business Case Development