## PMP related queries

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Posts: 3
Joined: Mon Apr 03, 2017 8:17 pm

### PMP related queries

Hi,
I am preparing for my PMP thru the PMP - made easy course offered by iZenBridge. Meanwhile during the preparation i have come across the below doubts. I shall use the same subject line to post future queries. Kindly advise on these.

1. What is the meaning of Opportunity cost?

2. What is the meaning of Estimate Range and ROM?

3. What is the meaning of constrained optimisation method?

4. Need clarification on this question 25 below:
when i calculate NPV for A and B separately:
NPV (A) = -4.54 + [45/(1+0.05)^2)] = 31.76
NPV (B) = -3.63 + [40/(1+0.15)^3)] = 25.90

So Project A is better in terms of NPV but below solution says its Project B. Please clarify

Company CEO is using economic model criteria of selecting projects. He has two projects; project A and B tabled for today’s meeting and has to select one of them. Following are the details of the projects. Which project will he select

5. Kindly elaborate more on the "Alternative" tools and techniques mentioned in 'Define scope' process. It is not clear to me on what do you mean by 'Alternatives'

6. Request you to provide more examples on each topic (video) which's explained by Saket. Theoretical explanation is good. With more live examples it would be easy to sink in the concepts

Thanks,
Deepak
barnita_n
Posts: 15
Joined: Thu Mar 02, 2017 2:29 pm

### Re: PMP related queries

1. What is the meaning of Opportunity cost?

<> Cost of opportunity which you have not taken , means cost of project which is not selected.

2. What is the meaning of Estimate Range and ROM?
<> ROM , rough order magnitude is high level project budget . It is part of Project charter and it is in range -25 to +75 from actual budget. Later on when scope becomes more clear the budget is refined and range is reduced up to -5 to 10 of actual budget.
Posts: 3
Joined: Mon Apr 03, 2017 8:17 pm

### Re: PMP related queries

Thank you Barnita.
Regarding question 3 (ROM) is it the "Percentage" you are mentioning about (-25/75) or (-5/10) etc.?

I would request other experts to advise me on other queries.