Crucial Exams

Project Management Professional Practice Question

A project manager is part of a selection committee reviewing two mutually exclusive projects. Project Alpha has significant strategic alignment with the company's long-term goals but a Benefit-Cost Ratio (BCR) of 0.9. Project Beta has moderate strategic alignment but boasts a BCR of 1.3. The organization has a strict governance policy that only projects demonstrating clear financial viability from the outset should be pursued. What should be the project manager's initial recommendation to the committee?

  • Recommend Project Beta due to its positive BCR, which aligns with the company's financial viability policy.

  • Recommend rejecting both projects until an option with both high strategic alignment and a high BCR is available.

  • Recommend recalculating the BCR for Project Alpha with adjusted cost estimates to see if it can exceed 1.0.

  • Recommend Project Alpha because its strong strategic alignment is more valuable than its financial metrics.

Project Management Professional
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