All of the following factors must be in place in order to develop an analogous estimate effectively EXCEPT:
A) An organization must know details behind the time value of money.
B) An organization must know how and to what extent the proposed project differs from the previous project.
C) An organization must have experience in performing similar projects.
D) An organization must know how much previous projects actually cost.

Question

All of the following factors must be in place in order to develop an analogous estimate effectively EXCEPT:​ 
A) An organization must know details behind the time value of money. 
B) An organization must know how and to what extent the proposed project differs from the previous project. 
C) An organization must have experience in performing similar projects. 
D) An organization must know how much previous projects actually cost.

Quizplus · Accepted Answer

While understanding the time value of money can be helpful in estimating project costs, it is not a requirement for developing an analogous estimate. The other factors listed, such as project similarities, past experience, and knowledge of previous project costs, are crucial in accurately estimating costs for a new project based on similar past projects.

All of the Following Factors Must Be in Place in Order