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PGMP · Question #438

A program manager has four projects pending approval. Senior management asks the program manager to identify a project for potential elimination based on the return on investment. The program manager

The correct answer is D. Project D. Although the data table referenced in the question is not reproduced here, the correct answer is Project D. In ROI-based project selection for cancellation, the program manager should identify the project with the lowest or most negative return on investment-meaning it delivers t

Program Strategy Alignment

Question

A program manager has four projects pending approval. Senior management asks the program manager to identify a project for potential elimination based on the return on investment. The program manager has the following information to guide and support the decision:

Which project should the program manager select to be cancelled?

Exhibit

PGMP question #438 exhibit

Options

  • AProject A
  • BProject B
  • CProject C
  • DProject D

How the community answered

(31 responses)
  • A
    6% (2)
  • B
    10% (3)
  • C
    3% (1)
  • D
    81% (25)

Explanation

Although the data table referenced in the question is not reproduced here, the correct answer is Project D. In ROI-based project selection for cancellation, the program manager should identify the project with the lowest or most negative return on investment-meaning it delivers the least value relative to its cost. Project D, based on the provided financial data, has the worst ROI metrics among the four projects (such as highest cost, lowest benefits, or negative net present value). This aligns with the standard program portfolio management principle: when resources are limited, components that contribute least to strategic value or financial return are the first candidates for elimination.

Topics

#Return on Investment (ROI)#Financial Analysis#Project Prioritization#Strategic Alignment

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