PMP Exam Question 12

Aligned with PMBOK 6th Edition®.

Make or buy decision : 

In a Make-or-buy analysis, which of the following may NOT be taken into account?

a) Sunk costs.
b) Return on investment
c) Net present values.
d) Payback periods.

1 responses on "PMP Exam Question 12"

  1. PMP Solution 12

    Make-or-buy analysis may use payback period, return on investment (ROI), internal rate of return (IRR), discounted cash flow, net present value (NPV), benefit/cost analysis (BCA), or other techniques in order to decide whether to include something as part of the project or purchase it externally. We should not take Sunk Costs into account, therefore correct answer is a).[PMBOK 6th edition, Page 473] [Project Procurement Management].

    Cheers

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