PMI Updated PMP Exam Questions and Answers by milly

The project manager should calculate the costs for each option in each location and compare the net present value (NPV) for each. This is because NPV is a comprehensive financial metric that takes into account both the timing and the amount of cash flows, providing a complete picture of the profitability and financial feasibility of the project. It is a standard method for using the time value of money to appraise long-term projects. By comparing the NPV of each option, the project manager can identify the most financially viable option. References: Project Management Institute. (2021). A Guide to the Project Management Body of Knowledge (PMBOK® Guide)–Seventh Edition. Project Management Institute, Inc.

Conflict management is a crucial part of project management. When a project manager faces a conflict with a project sponsor, it’s important to negotiate and develop a mutually beneficial solution12. This involves clear communication, active listening, and negotiation skills1. The project manager should try to reach a compromise where both parties may have to make concessions1. Rather than viewing the problem as a disagreement between two parties, it can be helpful to view it as a common issue and work together to resolve it1. This approach fosters collaboration and leads to a win-win outcome1. References: 12

https://www.pmi.org/learning/library/understanding-managing-conflict-resolution-strategies-6484

In Agile project management, when there is a lack of clarity on the requirements, it’s beneficial to start with the product prototype development1. This approach allows the team to create a tangible representation of the product that can be reviewed with the customer1. The feedback gathered from this review can then be used to refine the requirements and reduce ambiguity1. This iterative process of development, review, and feedback is a key aspect of Agile methodologies and helps ensure that the final product aligns with the customer’s needs and expectations234. References: 2314

https://www.scrum.org/resources/blog/five-essential-things-needed-agile-transformation

https://project-management.com/agile-project-management/

In a situation where a significant portion of the project budget has been reallocated, it’s crucial to reassess the project scope and deliverables. The Minimum Viable Product (MVP) approach allows the project to deliver the most essential features with the remaining resources. This approach is often used in agile or hybrid project management methodologies to ensure that the most valuable features are delivered first, even when resources are limited. References: PMBOK Guide, 6th Edition, Section 5.4.2.1: Define Scope: Tools and Techniques