Project Management Professional (PMP) — Question 707

A project manager is preparing the business case for a project in a not for profit organization. The project manager justifies the cost of the project to a group of sponsors.

Which benefits realization metric should the project manager use?

Answer options

• A. Budget at Completion (BAC)
• B. Payback period
• C. Total value of ownership
• D. Return of investment (ROI)

Correct answer: C

Explanation

The correct answer is C, Total value of ownership, because it provides a comprehensive view of costs and benefits over the project's lifecycle, which is crucial for nonprofits. The other options, while useful in different contexts, do not capture the overall value as effectively as Total value of ownership does.