ExpertHard1 markMultiple Choice
Task 2: Evaluate and deliver project benefits and valuetechnical approach decisionscost-benefit analysislong-term valueupfront investment
PMP · Question 96 · Task 2: Evaluate and deliver project benefits and value
A project manager is working on a project where the development team has identified a more efficient technical approach that would reduce long-term maintenance costs but would require 2 additional weeks and $25,000 more in development costs. What should the project manager do?
A project manager is working on a project where the development team has identified a more efficient technical approach that would reduce long-term maintenance costs but would require 2 additional weeks and $25,000 more in development costs. What should the project manager do?
Answer options:
A.
Approve the technical approach since it reduces long-term costs
B.
Reject the approach to maintain the current schedule and budget
C.
Present stakeholders with an analysis of the upfront costs versus long-term maintenance savings to enable an informed decision
D.
Implement the approach partially to get some benefits while minimizing cost impact
How to approach this question
When technical teams propose approaches with upfront costs but long-term benefits, provide stakeholders with cost-benefit analysis to enable informed business decisions.
Full Answer
C.Present stakeholders with an analysis of the upfront costs versus long-term maintenance savings to enable an informed decision✓ Correct
Decisions about upfront investment for long-term benefits are business decisions that require stakeholder input based on comprehensive cost-benefit analysis.
Common mistakes
Either making the decision based on technical merits alone or rejecting it based on immediate costs, instead of providing stakeholders with information for informed business decisions.
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