Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25

- Free Preparation Discussions

CIPS L6M5 Exam - Topic 1 Question 28 Discussion

Actual exam question for CIPS's L6M5 exam

Question #: 28
Topic #: 1

[All L6M5 Questions]

At what stage in a program's lifecycle is an Investment Appraisal conducted?

Answer Options:

ABefore contracting -- to ensure the program is viable

BAt the initiation stage -- to decide which contractor to hire

CDuring the project -- to ensure that money is being well spent and the program will be delivered to schedule

DAfter completion -- to assess whether money was invested wisely

Show Suggested Answer

Suggested Answer: A

Investment Appraisal is performed before a program is approved (p.69). It evaluates whether the project is financially viable and likely to provide a return on investment. Option B relates to procurement, and Options C and D are post-implementation assessments. [P.69]

by Ardella at Jul 18, 2026, 03:00 AM

Limited Time Offer

25%

Off

Get Premium L6M5 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Alaine

3 days ago

It's usually done before contracting to check viability.

upvoted 0 times

...

Ruby

8 days ago

After completion seems too late for an Investment Appraisal, but I guess it could help in learning for future projects.

upvoted 0 times

...

Elouise

13 days ago

I lean towards option A, but I can see how some might argue for option C since monitoring spending is crucial too.

upvoted 0 times

...

Walton

18 days ago

I remember a practice question that mentioned the initiation stage, but I feel like it might also be relevant during the project itself.

upvoted 0 times

...

Edelmira

23 days ago

I think Investment Appraisal is usually done before contracting, but I'm not entirely sure if that's the only time it matters.

upvoted 0 times

...