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Question 236 - PMP discussion

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In the past year, a company paid US$60,000 to an external subcontractor for an ongoing project.

The project manager has been asked to evaluate if the project can be delivered more cost effectively this year by using internal labor. The project manager used an optimistic term of 4 months, a pessimistic term of 6 months, and a most expected term of 5 months, and has concluded that the service can be delivered with the following resources:

- Two engineers (monthly salary of US$700 each)

- One project manager (monthly salary of US$1,600)

- Additional estimated monthly expenses of US$2,000

The project manager used the program evaluation and review technique (PERT) to calculate the savings if the project is delivered with in-house resources.

How much money will the project manager estimate the company can save?

A.
US$35,000
Answers
A.
US$35,000
B.
US$20,000
Answers
B.
US$20,000
C.
US$40,000
Answers
C.
US$40,000
D.
US$30,000
Answers
D.
US$30,000
Suggested answer: A

Explanation:

PERT formula is (Pessimistic value + Optimistic Value+ 4* Most likely)/6 = [4+6+(4*5)]/6= 5 Months . 5 months * total cost (1400+1600+2000) = 25000 is the actual cost. So, the savings will be 60000-25000= 35000.

Explanation:

asked 23/09/2024
Emily Mangrum
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