FIN 575 Final Exam

1. During the project initiation, a project charter is created. The project charter should include which of the following?

Project managers expenses Analysis of budget Selection of the senior project manager Projects high-level deliverables

2. A project's budget should be based on a company's

strategy and financial goals profitability financial goals and equity debt load and equity

3. Earned value management is a technique used to integrate projects

resources scope, schedule, and resources schedule, costs, and benefits costs and profits

4. Bill's Billiards has total assets of $8 million and a total asset turnover of 2.9 times. If the return on assets is 11%, what is Bill's profit margin?

11% 4.10% 2.50% 3.79%

5. What are the acceptance criteria for NPV?

If the NPV is less that $0, accept the project. If the NPV is greater than $0, accept the project. If the IRR is equal to 0%, reject the project. If the NPV is equal to the discounted payback, accept the project.

University of Phoenix Final Exam Study Guide

6. The risk response plan answers what question?

What can be done if risk occurs? What is the backup plan? What are project costs? There is no need to plan for risk seldom occurs in a project. How risk is to be managed

7. For the most recent year, Cal's Cats had sales of $380,000, cost of goods sold of $93,000, depreciation expense of $47,000, and additions to retained earnings of $61,420. The firm had $52,000 in interest expense, and 34% tax rate. What were the times interest earned ratio?

2.2 5.8 4.61 2.8

8. Bob's Garages has sales of $41 million, total assets of $32 million, and total debt of $11 million. If the profit margin is 12% what is the return on equity (ROE)?

14% 12% 51% 23.40%

9. What are the components of project planning that need monitoring?

Resource procurement and quality Project cost and risk Project cost, risk, resource procurement and quality Quality and control

10. During project planning, the project team creates a work breakdown structure that details work tasks that must be completed. The work breakdown structure should include a

schedule of when every task will start and be completed schedule of project staff meetings set of management tasks budget analysis

Click here to download the complete class of

11. The R. M. Senchack Corporation earned an operating profit margin of 6% based on sales of $11 million and total assets of $6 million last year. What was Senchack's total asset turnover ratio?

1 0.54 5.4 1.8

12. Why is the communication plan a crucial factor in project success?

Ensures the timely generation, collection, storage, and disposition of project information Facilitates upper management communication with the workers Reduces rumors in the organization Communicates the economic value of the project to management

13. A company's assets are financed with

debt equity equity or debt equity and debt

14. Part of financial planning for projects involves the understanding of the inflows and outflows of cash that will be created by the project. What tool can be used to track these cash flows?