Project Management Professional (PMP) — Question 697

A steering committee has asked the project manager to assist with the decision-making process between build versus buy delivery options. Which value metric should the project manager evaluate to respond to the steering committee's request?

Answer options

• A. Net present value (NPV)
• B. Earned value (EV)
• C. Impact value
• D. Expected monetary value (EMV)

Correct answer: A

Explanation

The correct answer is A, Net present value (NPV), as it helps evaluate the profitability of the investment over time by considering the time value of money. The other options, such as Earned value (EV) and Expected monetary value (EMV), focus on different aspects of project performance and risk assessment, which are not directly applicable to the build versus buy decision.