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Free L6M5 Exam Questions - CIPS L6M5 Exam

CIPS L6M5 Exam

Strategic Programme Leadership

Total Questions: 83

Last Updated : 03-02-2025

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CIPS L6M5 Exam Sample Questions:

Q1.

Why would a company use a discounted cash flow in calculating an Investment Appraisal? Select all that apply

Ato account for time delays in completing a programme

Bto provide a buffer to the budget

Cto ensure the correct amount of money is invested in the programme

Dto account for the time value of money

Eto accurately compare two projects which will last a different number of years

Q2.

Golden Rainbow Ltd has invested 4m in a new research project started three years ago. The CFO calculates that the average rate of return on the project is --6%. Is this possible?

Ayes -- projects can have a negative rate of return

Byes -- but this is likely to change to a positive figure shortly

Cno -- a rate of return is always displayed as a positive number

Dno -- a rate of return is expressed in years rather than as a percentage

Q3.

Manchester City Council is planning to construct a new hospital using an EPC style of contract. Which two of the following are the greatest risks to the Council?

Aensuring the specification is correct

Bsetting an accurate budget before the contract is signed

Caccurately communicating the requirements to the contractor

Dincluding a time-is-of-the-essence clause within the contract

Eensuring the contractor limits the use of subcontractors

Q4.

Fire Light Corporation has secured a contract to design a new bridge for a local council. The council wants a price set in advance but allows for minor adjustments due to unforeseen circumstances. Which pricing mechanism is most suitable?

Afirm fixed price

Bfixed lump sum

Cbill of quantity

Dtarget costing

Q5.

A local library is contracting a construction firm to design and build a new extension using a target costing method. Which of the following statements are true about this pricing mechanism? Select all that apply

Aany cost savings will be enjoyed by the library

Bthis form of contract requires a collaborative relationship

Ca target cost will ensure the contractor works competitively against the library to ensure costs remain low and their profit margin remains high

Dthe contractor is a price setter

Solutions:

Question: 1 Answer: D, E

Question: 2 Answer: A

Question: 3 Answer: A, C

Question: 4 Answer: B

Question: 5 Answer: B

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