Support Business Case Creation PMI-CPMAI Practice Questions (Page 4)

Questions 16–20

1. 16expert · hard

   A project manager is preparing a business case for a new customer loyalty program. The program is expected to increase customer retention and lifetime value. The project manager has data on current retention rates and average customer lifetime value, but the marketing team has provided a range of potential improvements, from 5% to 15%. The CFO wants a single number for the business case. What should the project manager do?

   • AUse a conservative estimate within the range, such as 7%, and clearly state the assumptions and range in the business case.
   • BPresent the range to the CFO and ask them to choose a number.
   • CUse the midpoint of 10% without additional explanation.
   • DUse the highest estimate of 15% to make the business case more compelling.
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2. 17application · medium

   A project manager is preparing a business case presentation for the executive board. The financial analysis shows a 3-year payback period, but the board is known to prioritize strategic alignment over short-term ROI. The project manager has detailed cost breakdowns and benefit projections. What should the project manager emphasize in the presentation?

   • AThe 3-year payback period as the primary justification for approval.
   • BThe long-term strategic benefits and how the solution supports the company's growth objectives.
   • CThe detailed cost breakdowns to demonstrate thorough financial planning.
   • DA comparison with competitors' technology investments to justify the project.
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4. 18expert · hard

   A project manager is building a business case for a new supply chain optimization system. The system is expected to reduce logistics costs by 15%. The project manager has access to current logistics cost data, but the data is scattered across multiple departments and in different formats. The finance team has offered to help consolidate the data, but this will take two weeks. The business case is due in one week. What should the project manager do?

   • AWait for the finance team to consolidate the data, even if it means missing the deadline.
   • BAsk the finance team to provide a rough estimate without the consolidated data.
   • CUse the available data to create a preliminary estimate and note the data limitations, then refine with finance's help after submission.
   • DRemove the cost reduction benefit from the business case until the data is available.
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5. 19foundation · easy

   What is the role of technical validation in business case development?

   • ATo write the executive summary of the business case
   • BTo calculate the financial return on investment
   • CTo approve the project budget
   • DTo confirm that the proposed solution is technically feasible and the assumptions are realistic
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6. 20application · medium

   A business case for migrating to a cloud-based ERP system includes an assumption that the migration will take six months. The project manager is not a technical expert. The IT architect has privately expressed concerns that the timeline is unrealistic given the current system's complexity. What should the project manager do?

   • AAsk the IT architect to formally validate the migration timeline and adjust the business case if needed.
   • BProceed with the business case and address the timeline during project execution.
   • CRemove the timeline from the business case to avoid conflict.
   • DKeep the six-month timeline because it was approved by the sponsor.
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