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Exam PMP topic 1 question 1321 discussion

Actual exam question from PMI's PMP
Question #: 1321
Topic #: 1
[All PMP Questions]

A project manager has been assigned to a project that is consolidating regional operations into a global operation. The project sponsor explains that some efficiencies could be obtained from this unification.

However, the sponsor is not sure if this effort will have a return on investment (ROI) and would like the project manager's opinion.

What should the project manager do?

  • A. Request the project sponsor to include a commitment from the stakeholders to reduce costs within the project scope.
  • B. Suggest conducting a detailed cost-benefit analysis for financial feasibility before the start of the project.
  • C. Recommend conducting an initial high-level feasibility assessment to estimate the cost and benefits.
  • D. Explain that the project manager is limited to demonstrating earned value (EV) from the project execution perspective.
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Suggested Answer: B 🗳️

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victory108
1 month, 2 weeks ago
Selected Answer: B
B. Suggest conducting a detailed cost-benefit analysis for financial feasibility before the start of the project
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Ngho
1 month, 3 weeks ago
C. Recommend conducting an initial high-level feasibility assessment to estimate the cost and benefits. Before diving deeper or committing to a detailed analysis, conducting an initial high-level feasibility assessment allows for a quick evaluation of whether the project is likely to deliver value. This will give the project sponsor and stakeholders a preliminary idea of whether it's worth pursuing the effort further, particularly in terms of potential costs and benefits. Option B: Conducting a detailed cost-benefit analysis could be useful but is a more time-consuming step that should be considered after an initial high-level assessment suggests the project has potential.
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