Discuss CIPS L6M5 Exam Topic 1 Question 28

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

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]

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12 comments · newest first

Craig 2 months ago

C feels right. During the project, we need to track spending and schedule.

Holley 2 months ago

I lean towards B. Initiation stage is crucial for contractor decisions.

Maryrose 2 months ago

I think it's A. Before contracting makes sense to check viability.

Ilene 2 months ago

Isn't it also important at the initiation stage?

Cristen 3 months ago

Wait, after completion? That seems too late to me!

Dorothy 3 months ago

I thought it was done during the project, like option C.

Corrina 3 months ago

Totally agree, option A is the right one!

Alaine 3 months ago

It's usually done before contracting to check viability.

Ruby 3 months ago

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

Elouise 3 months ago

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

Walton 4 months ago

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

Edelmira 4 months ago

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

CIPS L6M5 Exam - Topic 1 Question 28 Discussion