PMP · Question #914
A steering committee has asked the project manager to assist with the decision-making process between build versus buy delivery options. Which value metric should the project manager evaluate to…
The correct answer is A. Net present value (NPV). To decide between "build versus buy" options, the project manager should evaluate Net Present Value (NPV), as it quantifies the long-term financial viability and profitability of each investment.
Question
Options
- ANet present value (NPV)
- BEarned value (EV)
- CImpact value
- DExpected monetary value (EMV)
How the community answered
(27 responses)- A81% (22)
- B11% (3)
- C4% (1)
- D4% (1)
Why each option
To decide between "build versus buy" options, the project manager should evaluate Net Present Value (NPV), as it quantifies the long-term financial viability and profitability of each investment.
Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project by comparing the present value of all cash inflows and outflows over time. For a build versus buy decision, NPV helps the steering committee determine which option yields the highest return on investment by considering the time value of money, thus providing a clear financial comparison.
Earned Value (EV) is a project performance measurement technique used during project execution, not for initial investment decision-making between options.
'Impact value' is a general term and not a standardized financial metric used for comparing investment options in the same way as NPV.
Expected Monetary Value (EMV) is primarily used in risk management to quantify the average outcome of a decision when uncertainty is present, not as the primary metric for comparing two distinct investment options like build vs. buy which typically have more defined costs and benefits over time.
Concept tested: Financial evaluation of project options
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok/project-cost-management
Topics
Community Discussion
4
Toby R.Jul 5, 2026Confirmed A on my exam last month. NPV is the right call here because build versus buy is a capital investment decision, and you need to compare the present value of each option's cash flows to make the call.
Fatima Z.Jun 24, 2026Confirmed A on my exam last week. D is the trap because EMV sounds like a decision metric, but EMV is for risk, not build-versus-buy, so remember Build Better = NPV.
Carlos M.Jul 5, 2026Going with C. Build versus buy is a trade-off decision that requires looking at the broader impact across cost, schedule, risk, and strategic alignment, which is exactly what impact value captures. The other options are either too narrow or serve different purposes in project analysis.
Fatima Z.Jul 5, 2026Actually it is A, Carlos. Cost-benefit analysis is the tool that weighs building in-house against buying a product, because it puts a dollar value on each path and lets you compare them head to head. Impact value sounds impressive but it is not the standard lens for a build-versus-buy trade-off, think C for Cost-benefit and you will not get tripped up.