A company's management team is in a meeting to review all the products and services delivered in the first quarter of the year for profitability.
They are requesting information on payback period, return on investment, and total cost of ownership.
The project manager is checking the project repository for available documentation.
In which of the following documents is the project manager MOST likely to find the required information?
Click on the arrows to vote for the correct answer
A. B. C. D.A.
The project manager is looking for information on payback period, return on investment, and total cost of ownership. These are all financial metrics used to evaluate the profitability of a project. Therefore, the document that is most likely to contain this information is the business case.
The business case is a document that outlines the reasons why a project is being undertaken, including its potential benefits, costs, and risks. It is usually created during the initiation phase of the project and serves as the basis for the project's justification and approval.
In the business case, the project manager will find information on the expected financial outcomes of the project, such as the payback period, return on investment, and total cost of ownership. The payback period is the length of time it takes for the project's benefits to equal its costs. Return on investment (ROI) is the ratio of the project's net profit to its total investment. Total cost of ownership (TCO) is the total cost of owning and operating the project over its entire lifecycle.
The project charter is a high-level document that defines the project's purpose, scope, objectives, and stakeholders. It may contain some financial information, but it is unlikely to have the detailed financial analysis required to calculate the payback period, ROI, and TCO.
The risk management plan is a document that outlines how risks will be identified, assessed, and managed throughout the project. While it may contain some financial information related to risk management, it is unlikely to have the detailed financial analysis required to calculate the payback period, ROI, and TCO.
The scope of work is a document that outlines the specific tasks and deliverables that are required to complete the project. It does not typically contain financial information, and therefore is unlikely to have the detailed financial analysis required to calculate the payback period, ROI, and TCO.
In summary, the project manager is most likely to find the required financial information on payback period, return on investment, and total cost of ownership in the business case document.