Discovery Phase Artifacts PK0-005 Practice Questions (Page 1)

Questions 1–5

1. 1application · medium

   A project manager is asked to create a business case for a project that will upgrade the company's IT infrastructure. The primary goal is to improve system reliability and reduce downtime. Which statement best describes the purpose of this business case?

   • ATo provide a detailed project schedule and resource plan
   • BTo justify the investment by explaining the benefits and costs to decision-makers
   • CTo assign project team members to specific tasks
   • DTo list the specific hardware and software to be purchased
   Reveal Solution Discussion Select an answer first
2. 2foundation · easy

   Which of the following is a key component of a business case?

   • ABenefits
   • BWork breakdown structure
   • CStakeholder register
   • DProject schedule
   Reveal Solution Discussion Select an answer first
4. 3foundation · easy

   Which of the following is a typical criterion for selecting a vendor from a prequalified list?

   • AVendor's proposed cost
   • BVendor's number of employees
   • CVendor's marketing strategy
   • DVendor's company logo
   Reveal Solution Discussion Select an answer first
5. 4expert · hard

   A non-profit organization is evaluating a business case for a new donor management system. The case shows a positive cost-benefit analysis, but the primary benefit is improved donor retention, which is difficult to quantify in monetary terms. The board is hesitant to approve the project because the financial return is not as clear as other investment opportunities. What should the project manager do to strengthen the business case?

   • AInclude qualitative benefits, such as improved donor satisfaction and long-term loyalty, alongside the financial analysis
   • BReject the project because the financial return is not strong enough
   • CRecommend a different project with a clearer financial return
   • DFocus only on the cost savings from the new system
   Reveal Solution Discussion Select an answer first
6. 5expert · medium

   A company is evaluating a project with an initial cost of $200,000. The project is expected to generate $60,000 in annual benefits for 5 years. The company's required rate of return is 10%. Using a simple net present value (NPV) calculation (without considering the time value of money in detail), what is the approximate net benefit of the project?

   • A$100,000
   • B$200,000
   • C$300,000
   • D$60,000
   Reveal Solution Discussion Select an answer first