Suppose that a feasibility study done for a project by a consulting company brought the following results: PW (Benefits)= $13 million
PW (Costs)= $10 million
It was mentioned in the feasibility study that there is a risk of the project's loss due to potential high inflation. How should the project manager react to these results?
A)Terminate the project right away.
B)Terminate the project at initiation stage.
C)Proceed with the project to the planning stage during which the risk of inflation should be addressed.
D)Use Monte Carlo simulation to address the risk.
E)Look for a second opinion on feasibility study.

Question

Quizplus · Accepted Answer

The project should proceed to the planning stage where the risk of inflation can be addressed, as the benefits currently outweigh the costs.

Suppose That a Feasibility Study Done for a Project by a Consulting