A Project Sponsor Approaches the Project Manager with a Change

question 345

Multiple Choice

A project sponsor approaches the project manager with a change request. During the conversation, the project sponsor claims to understand the impact of the change to the project length and has the budget to handle the cost. The sponsor also tells the project manager to send whatever needs a signature. The project manager's NEXT step should be to:

• A) document the change
• B) implement the change
• C) communicate the change
• D) prioritize the change

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Definitions:

Multiple IRR Problem

A situation in capital budgeting where a project has more than one internal rate of return due to changing cash flow signs over the project's duration.

Normal Cash Flows

Regular inflows or outflows of cash associated with operational activities of a business within a specific period.

Modified Internal Rate of Return (MIRR)

A capital budgeting method that adjusts the internal rate of return calculation to better reflect the project's cost of capital and investment returns.

Real Internal Rate of Return

The adjusted rate of return that accounts for inflation, providing a more accurate measure of the actual purchasing power of future cash flows from an investment.