A 5-Year Project Requires $10 Million in Initial Investment and Will

question 50

Multiple Choice

A 5-year project requires $10 million in initial investment and will bring $0.5 million in net annual revenue under a 10% annual interest rate. If you were a project manager, would you proceed with project or would you terminate the project and at which stage?

• A)Proceed with the project.
• B)Terminate the project at initiation stage.
• C)Terminate the project at planning stage.
• D)Terminate the project at execution stage.
• E)Terminate the project at monitoring and control stage.

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Definitions:

Ferdinand

Refers to various historical figures, the most renowned being Ferdinand II of Aragon, who, alongside Queen Isabella of Castile, financed Christopher Columbus's 1492 voyage, leading to the European discovery of the New World.

Selling

The process of transferring goods or services from one party to another in exchange for money or other compensation.

Treaty of Tordesillas

An agreement in 1494 between Portugal and Spain, dividing the newly discovered lands outside Europe between them along a meridian 370 leagues west of the Cape Verde islands.

Exploration Zones

Designated areas set aside for the purpose of exploration, often related to the search for natural resources or scientific research.