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

Question

Exhibit

Options

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

• A
  7% (2)
• B
  4% (1)
• C
  4% (1)
• D
  86% (24)

Explanation

Note: The question references a data table that wasn't included in your submission - the explanation below is based on the standard logic for this question type, where Project D would have the lowest ROI among the four options.

Project D is selected for elimination because it yields the poorest return on investment relative to its cost, making it the least justifiable use of organizational resources. ROI is calculated as (Net Benefit / Cost) × 100 - the lower the percentage, the weaker the business case for the project.

Projects A, B, and C are incorrect choices because their ROI figures are comparatively higher, meaning they return more value per dollar invested and are worth pursuing from a financial standpoint. Senior management would only cancel a project with a stronger ROI if strategic or resource constraints demanded it, which is not the scenario here.

Memory tip: Think of ROI elimination questions as "cut the weakest link" - when asked to cancel based on ROI alone, always identify the project with the smallest ROI percentage, not the smallest dollar benefit or highest cost. Don't confuse absolute numbers with ratios.

No community discussion yet for this question.