Project Management Professional (PMP) — Question 1054

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?

Answer options

• 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.

Correct answer: B

Explanation

The correct answer is B because conducting a detailed cost-benefit analysis is essential for understanding the financial feasibility and potential ROI of the project before it begins. Option A is incorrect as it focuses on stakeholder commitments rather than financial analysis. Option C, while useful, is less comprehensive than a detailed cost-benefit analysis. Option D is not relevant in this context as it limits the project manager's role to earned value metrics rather than addressing the ROI concern.