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Module 1 Challenge (Project Initiation: Starting a Successful Project) Answers 2025

Question 1

What are two potential consequences of a project manager failing to properly initiate a project?

  • Stakeholders might not agree on what success looks like.

  • Resources can be underestimated.

  • External risks can affect project success.

  • New dependencies can arise.

✅ Correct Answer: Stakeholders might not agree on what success looks like; Resources can be underestimated

🔹 Explanation:
Without proper initiation, stakeholder expectations aren’t aligned and resources may be underestimated. External risks and dependencies exist in all projects and are typically addressed later in planning, not initiation.

Question 2

What type of analysis compares the value of a project’s outcomes with the financial and time expenses of the project?

  • Goals analysis

  • Visual analysis

  • Benefit analysis

  • Cost-benefit analysis

✅ Correct Answer: Cost-benefit analysis

🔹 Explanation:
Cost-benefit analysis evaluates whether the expected benefits of a project outweigh the associated costs and time required.

Question 3

As a project manager, you add a task to complete a new feature in the app your team is building. Which key component of project initiation are you working on?

  • Success criteria

  • Resources

  • Scope

  • Deliverables

✅ Correct Answer: Deliverables

🔹 Explanation:
A deliverable is a specific product, service, or result that the project is expected to provide. Adding a new feature to the app represents a tangible outcome of the project — not just the scope definition.

Question 4

As a project manager, you meet with stakeholders to set what products and services you will complete for the project. Which project initiation component are you trying to determine?

  • Scope

  • Resources

  • Deliverables

  • Success criteria

✅ Correct Answer: Deliverables

🔹 Explanation:
Deliverables are the tangible outputs (products/services) that the project will provide. Setting them with stakeholders ensures clarity on expected outcomes.

Question 5

What term refers to the budget, people, materials, and other items necessary to complete a project?

  • Deliverables

  • Scope

  • Success criteria

  • Resources

✅ Correct Answer: Resources

🔹 Explanation:
Resources include the budget, people, equipment, and materials needed to execute and complete a project.

Question 6

Which document allows project managers to get organized, sets up a framework for what needs to be done, and communicates the framework to stakeholders?

  • A budget plan

  • A project charter

  • A risk log

  • A retrospective document

✅ Correct Answer: A project charter

🔹 Explanation:
The project charter outlines objectives, scope, stakeholders, and high-level plans. It’s a foundational document that aligns everyone before detailed planning begins.

Question 7

As a project manager, what question will you ask to determine the employee satisfaction of a project?

  • Will the project increase customer retention and cause them to spend more time on the product?

  • Will this project reduce employee’s overtime hours and save the company money?

  • Is this project likely to improve employee morale and reduce turnover?

  • Is this project likely to improve the company’s image?

✅ Correct Answer: Is this project likely to improve employee morale and reduce turnover?

🔹 Explanation:
Employee satisfaction is measured by morale and turnover, not customer retention, cost savings, or company reputation.

Question 8

You expect that a project will bring in $20,000 USD in revenue per year. You estimate it will cost $8,000 up front. You also estimate costs of $150 per month for the first 12 months, which equals $1,800 per year. Using the formula (G-C) ÷ C = ROI, how would you calculate the project’s return on investment (ROI) after the first 12 months?

  • (20,000 – 9,800) ÷ 8,000 = 88%

  • (20,000 – 14,400) ÷ 9,800 = 108%

  • (20,000 – 8,000) ÷ 9,800 = 90%

  • (20,000 – 9,800) ÷ 9,800 = 104%

✅ Correct Answer: (20,000 – 9,800) ÷ 9,800 = 104%

🔹 Explanation:
Total cost = $8,000 (upfront) + $1,800 (yearly) = $9,800.
ROI = (Gain – Cost) ÷ Cost = (20,000 – 9,800) ÷ 9,800 = 10,200 ÷ 9,800 ≈ 104%.