A PM is working with stakeholders in the discovery phase and comparing the cost of the project to the cost savings the project will produce when it is complete. The output of this exercise will…

The correct answer is A. ROI. The output of this exercise where the project manager is comparing the cost of the project to the cost savings the project will produce when it is complete will produce the return on investment (ROI). ROI is a financial metric that measures the profitability or efficiency of an…

Project Management Concepts

Question

A PM is working with stakeholders in the discovery phase and comparing the cost of the project to the cost savings the project will produce when it is complete. The output of this exercise will produce the:

Options

AROI.
BSOW.
CRFI.
DRFP.

How the community answered

(40 responses)

A
93% (37)
B
5% (2)
C
3% (1)

Explanation

The output of this exercise where the project manager is comparing the cost of the project to the cost savings the project will produce when it is complete will produce the return on investment (ROI). ROI is a financial metric that measures the profitability or efficiency of an investment by comparing its benefits or returns to its costs. ROI can help to evaluate the value or worth of a project and support decision making and prioritization. ROI is calculated by dividing the net benefits (benefits minus costs) by the total costs and multiplying by 100 to get a percentage.

Topics

#ROI#Financial analysis#Project initiation#Cost-benefit analysis

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