A project manager is preparing a budget estimate for a new software development project. The project scope includes the development of a mobile application with features similar to a previous project, but with additional functionalities requested by the client. Which of the following approaches should the project manager take to estimate the budgetary needs accurately?
Increase the budget by 30% compared to the previous similar project to account for the additional functionalities requested by the client
Analyze current market rates for resources required to develop the mobile application and calculate the total budget based on these rates
Conduct a risk assessment to identify potential challenges and allocate a contingency budget to mitigate these risks
Review lessons learned and historical data from the previous similar project and adjust the budget based on the additional functionalities requested by the client