WorksheetsBusiness Case Quiz
Total questions: 26
Worksheet time: 13mins
What does a business case include to make the financial case?
Market analysis
Investment appraisal
Risk assessment
Team structure
What are we trying to achieve?
A decrease in quality
A specific goal
An increase in expenses
A delay in timeline
What are the performance criteria?
Standards for success
Random metrics
Unrelated factors
Undefined goals
What are key performance indicators (KPIs)?
Metrics for measuring success
Irrelevant data points
Unnecessary statistics
Random numbers
What are the main risks?
Potential challenges
Guaranteed outcomes
Certain successes
Unrelated issues
What is one of the roles of a project sponsor after the project has started?
Design the project plan
Monitor the performance of the project manager
Hire the project team
Develop the project budget
What is included in the calculation of investment appraisal?
Payback
Dismantling and disposal costs
Cost savings
Expected residual value
If a project investment is £10,000 and gives a return of £2000 per year over 7 years
What is the ROI?
£5.71
£571.4
£10,000
£100
What is the discount rate for period 26 at 3%?
0.4637
0.5087
0.5410
0.5750
What is the discount rate for period 17 at 7%?
0.3166
0.3624
0.4150
0.4746
What is the discount rate for period 2 at 11%?
0.8734
0.8116
0.7831
0.7430
What is the NPV for Year 4 according to the table?
£9,872.4
£9,523.8
£9,070.3
£10,365.6
What is the discount factor for Year 2?
0.9070
0.9523
0.8638
0.8227
What is the NPV for Year 3 according to the table?
£10,365.6
£9,523.8
£9,070.3
£9,872.4
What is the total income for Cash Flow B over six years?
£24,000
£20,000
£12,000
£8,000
What is the discount factor for year 6?
0.9259
0.8573
0.6806
0.6302
What is the cash flow A for year 2?
£6,000
£4,000
£2,000
£5,000
What is the NPV A for year 4?
£5,555.40
£5,143.80
£3,175.20
£2,940.00
What is the net discounted return for project B after deducting the original investment of £12,000?
£7437.00
£7181.50
£12,000.00
£10,000.00
How is the NPV for year 1 calculated?
B1/(1+r)
B1*(1+r)
B1+(1+r)
B1-(1+r)
In the formula NPV=B/(1+r)n , what does 'r' represent?
Interest rate
Revenue
Risk factor
Residual value
Why is it important to use the relevant discount rate for each year?
Because the discount rate can vary year by year
Because it is always constant
Because it is irrelevant
Because it is the same for all projects
What is the definition of payback in project management?
The time taken to recover the capital outlay of the project
The total profit made from a project
The interest rate applied to a project
The total cost of a project
What is the formula to calculate ROI?
(Net Profit + Cost of Investment) x 100
(Net Profit - Cost of Investment) x 100
(Cost of Investment / Net Profit) x 100
(Net Profit / Cost of Investment) x 100
What is the purpose of a sensitivity analysis in project management?
To evaluate team performance
To calculate the total project cost
To assess the impact of variable changes on project outcomes
To determine the project's break-even point
Which of the following is a qualitative factor in investment appraisal?
Net Present Value (NPV)
Internal Rate of Return (IRR)
Payback period
Impact on company reputation
