Project Management Professional (PMP) — Question 831

A bank is considering building another branch in one of three neighboring cities. The project manager has been tasked with demonstrating the benefits of building a new branch, renting an existing building, or not expanding at all.

How should the project manager proceed?

Answer options

• A. Perform a gap analysis on renting in each of the locations.
• B. Calculate the costs for each option in each location and compare the net present value (NPV) for each.
• C. Perform a Kano analysis on building a new branch versus renting in each of the locations.
• D. Calculate the payback period (PBP) for building a new branch in each location versus renting an existing building.

Correct answer: B

Explanation

The correct answer is B because calculating the costs and comparing the net present value (NPV) allows for a comprehensive financial evaluation of all options. The other choices, while useful analyses, do not provide the same level of financial insight or direct comparison needed to make an informed decision about the expansion.