Question 1

The Financial Appraisal for the new campus includes the cost of inflation over the life of the scheme. Is this an appropriate application of the Five Case Model for the project?

Options :

A : No, because the Financial Appraisal should be based on constant prices.

B : No, because it is the Economic Appraisal that should include the cost of inflation.

C : Yes, because this will be an on going cost to the new campus over the life of the scheme.

D : Yes, because all of the new campus assets will decrease in value over the life of a scheme.

Answer: A

Question 2

Which 2 attributes demonstrate that this option supports the key CSF Potential affordability?

Options :

A : The addition of a new campus will be matched by plans to downsize elsewhere.

B : Constant prices have been used to estimate lifecycle costs in the value for money appraisal.

C :

The 3 local government authorities have formed a partnership known as the Western Area Learning Consortium.

D : The option provides an increase in the progression to higher-level learning.

E : The cost of maintaining and adapting Pittville High School will be removed by closing the school.

Answer: A,E

Question 3

Which 2 details should be defined when determining the potential business scope?

Options :

A : A wide range of options that meet the spending objectives.

B : Affected business areas, functionality and organization.

C : Boundaries, or limitations, of the project.

D : Critical success factors essential to the successful delivery of the scheme.

E : How services are currently organized, provided and supplied.

Answer: B,C

Question 4

Using the Scenario, answer the following questions about the Financial Appraisal of the option to build a new campus onthe site of the Old Fire Station Headquarters. Decide whether the action taken represents an appropriate application of the Five Case Model for this project and select the response that supports your decision. The cost of inflation is estimated to be 2% per annum. Should the project manager use this information when preparing the Financial Appraisal for this scheme?

Options :

A : No, because the Financial Appraisal should include constant or real prices.

B : No, because the Financial Appraisal should exclude the cost of general inflation and depreciation.

C : Yes, because the Financial Appraisal should include the cost of inflation.

D : Yes, because inflation will reduce the cost of the scheme over time.

Answer: C

Question 5

The Financial Appraisal includes a sensitivity analysis of the new campus based on varying forecasts for future demand. Is this an appropriate application of the Five Case Model for the project?

Options :

A : No, because a sensitivity analysis is only conducted in the Economic Case.

B : No, because the forecast for demand was identified in the Strategic Case.

C :

Yes, because the preferred option should be subject to a sensitivity analysis in the Financial and Economic Case.

D : Yes, because all short listed options should be subject to sensitivity analysis.

Answer: C