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Project Management and NPV

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1. Japan has improved quality dramatically over the last 30 years. Which of the following is not one of the reasons for this improvement?
a. the use of quality circles
b. allowing the means for worker input and suggestions
c. use of quality control charts
d. focusing quality control effect on system output

2. According to McGregor's concept of theory X and theory Y, which of the following statements is true?
a. Theory X managers view their subordinates as lazy, irresponsible, and resistant
to change.
b. Theory Y managers view their subordinates as creative, imaginative, and
agreeable to change.
c. Theory Y managers tend to delegate authority
d. All the above

3. Tools and techniques that aid in staff acquisition include:
a. staffing management plan
b. procurement
c. team directory
d. all the above

4. Year 1 Year 2 Year 3 Year 4
Costs $ 5,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000
Benefits $ 0 $ 2,000,000 $ 4,000,000 $ 4,000,000
The discount rate is 10% (Round the discount factor to two decimal places)

i. The payback for the project occurs in year:
a. 1
b. 2
c. 3
d. 4

ii. The net present value of the project is:
a. ($ 160,000)
b. $ 340,000
c. $ 570,000
d. $ 640,000
e. $ 1,360,000

iii. The project return on investment is:
a. (2.4%)
b. 7.7%
c. 8.5%
d. 13.60%
e. 20.00%

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The solution answers questions related to project management and NPC calculations.

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1. Japan has improved quality dramatically over the last 30 years. Which of the following is not one of the reasons for this improvement?
a. the use of quality circles
b. allowing the means for worker input and suggestions
c. use of quality control charts
d. focusing quality control effect on system output

Explanation: Quality Control is not after the product has been produced but while it is being produced. Companies spend much less money if they can find quality issues before a final product has been made.

2. According to ...

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