Free PMP Exam Sample Question

Free PMP Exam Sample QuestionThe following PMP® exam sample question is taken from the Free PMP Exam Simulator (The answer is at the very bottom):

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You are preparing business cases for two telecommunications projects that your company is considering. The first of these is a $50 Million GSM technology-based project, while the second one is a $45 Million CDMA technology-based project. Both projects could be very lucrative and rewarding. However, your financial controller has told you that your company can only invest in one of these projects. If you choose to execute the GSM project, what will be your opportunity cost?

A) $95 Million
B) $50 Million
C) $45 Million
D) $5 Million

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Hint: Opportunity cost is the cost of a commercial decision and is regarded as the value of the alternative that is forgone.

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Answer and Explanation:
The Correct Answer is C. Opportunity cost is the cost of a commercial decision and is regarded as the value of the alternative that is forgone. Since you have decided to go with the $50 Million GSM project and forego the $45 Million CDMA project, the opportunity cost of this decision is $45 Million.

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