University of Maryland University College
IFSM 438 - Project Management

Mid-Term Exam

The following exam must be completed and Submitted prior to 11AM Thursday, 1 April, EST. You may work off line and then enter your answers and submit the form.

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Name:
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Provide the best answer to the following questions. The best answer is the one enumerated in the text.
(2 points Apiece)
(1) The Prime Objectives of Project Management are Performance, Cost and Time.

True False

(2) Project Managers have full authority to command the requisite resources to get the job done.

True False

(3) Projects can go on indefinately with no defined ending period.

True False

(4) Scope, Unfamiliarity, Complexity and Stake are yardsticks that management can use to determine if an undertaking should be a project.

True False

(5) The Operating Necessity, Non-Numeric Selection Model, is based on a desire to maintain the company's competitive position in the marketplace.

True False

(6) Functional Managers must have general knowledge of their functional area and be able to persuasively manage all of their employees.

True False

(7) In a Matrix Organization the Project Manager has full authority over schedule but not over the technology to be used.

True False

(8) A Work Breakdown Structure (WBS) can be prepared to determine the exact value of the of the tasks required to complete the project.

True False

(9) In choosing the structure of a project, the first problem is to determine where the workers will come from to complete the Technical Objectives.

True False

(10) The purpose of planning, according to our author, is to facilitate the creation of the Requirements Document for the specific technical objectives.

True False

Define the following terms fully, according to definitions in the text:
Each Text Box will scroll as your answer is entered. (5 Points Apiece)
(11) Trade Off

(12) Leadership

(13) Project

(14) WBS

(15) TREND

Calculate the answers to the following problems and enter your
answers in the spaces provided:
(16) A project has net cash flows of $35,000, $40,000, $70,000, $90,000, and $95,000 over the next five years. It will cost $250,000 to implement the project. If the company requires a 10% return on investments, is this a good investment? Explain your answer. (10 Points)

(17)

(a) If our next six year project will cost $500,000 to implement and has annual cash flows of $75,000, what is the payback period for the project? (5 Points)

(b) What is the Annual Rate of return for the above Project? (5 Points)

(18) Draw the Network for the following project and answer the questions below:

ACTIVITY PREDECESSOR DURATION
A - 4
B - 2
C - 1
D A 6
E B 3
F B 8
G C 4
H D,E 2
I F,G 4
J C 5
K J 8

(a) What is the Critical Path for the Network? (5 Points)

(b) How long does it take to complete the project? (5 Points)

(c) What is the EST for activity F? (5 Points)

(d) What is the LOT for activity C? (5 Points)

(e) How much slack is associated with activity E? (5 Points)

(19) On the network in problem 5 (Page 426 of the text), How many resource units will be on the job during the first four days, if no changes are made? (5 Points)

(20) How much will it cost, per day, to crash the following activity? (5 Points)

Activity Crash Time Norman Cost Crash Cost Normal Time
A 2 Days $100 $500 6 Days

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