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

question 36

Multiple Choice

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.

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Definitions:

Plutchik

Refers to Robert Plutchik, who is best known for proposing a psychoevolutionary theory of emotion that includes the famous wheel of emotions.

Facial Expression Of Disgust

A universal facial reaction indicating aversion, often characterized by a wrinkled nose, raised upper lip, and narrowed eyes.

Innate Reaction

A natural, automatic response to a stimulus that is inherent and not learned, often seen in instinctual behaviors.

Universally Recognized

Acknowledged or accepted by all as true, valid, or obligatory without exception across different cultures and societies.