National University

Project Appraisal and Management

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
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​ 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
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​ 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
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​ 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
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​ 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