Business Case, Investment Appraisal & Procurement
24 practice questions with explanations — 15 free to try
PassNova has 24 APM PMQ practice questions on Business Case, Investment Appraisal & Procurement, each with a clear explanation. A 15-question taster is free with no sign-up; the full bank is part of PassNova Premium. Updated for 2026.
Business Case, Investment Appraisal & Procurement: example questions & answers
2 worked examples with answers and explanations below. Try 15 APM PMQ questions free in the browser; the full 24-question Business Case, Investment Appraisal & Procurement bank is part of PassNova Premium.
What information does a business case typically include to justify a project?
- ACosts, benefits, risks, timescales and the project's strategic alignment✓
- BOnly the names of the project team
- COnly the detailed technical drawings and specifications of the solution to be built
- DOnly the project's schedule
Answer: A business case sets out the expected costs, benefits, risks, timescales and strategic fit so decision-makers can judge whether the investment is worthwhile.
What does Net Present Value (NPV) do when appraising an investment?
- AIt lists the project's risks in order of severity
- BIt calculates the total undiscounted cash that the project will ever receive, adding every inflow together without any adjustment for when it arrives
- CIt discounts future cash flows to today's value and nets them against the initial investment, to judge whether the investment is worthwhile✓
- DIt sets the project's quality standards
Answer: NPV discounts a project's expected future cash inflows and outflows back to present-day values and nets them against the initial outlay, reflecting that money in the future is worth less than money today.