Benefits Analysis and Planning

Correct Answer: Discuss with stakeholders and assess if the longer benefit realization period is acceptable

The best answer is to 'Discuss with stakeholders and assess if the longer benefit realization period is acceptable.' This is because it is crucial to align the stakeholders' expectations with the project outcomes. Other options are incorrect because: 'Ignoring the result and proceeding as planned' is not recommended, as ignoring the benefits analysis can lead to unexpected results and possible project failure. 'Canceling the project immediately' is too drastic and premature without discussing and understanding the stakeholders' perspective on the benefits realization period. Lastly, 'changing the project scope to shorten the benefit realization period' may not be feasible or beneficial in the long run as it may impact the product quality, cost, and may not necessarily lead to shorter benefit realization.

Correct Answer: Conduct a thorough risk assessment and engage key stakeholders in evaluating the investment against potential market growth, seeking to understand their tolerance for upfront costs.

The best approach is to conduct a thorough risk assessment and engage key stakeholders in evaluating the investment against the potential market growth, seeking to understand their tolerance for upfront costs. This ensures that potential risks are identified and managed, and that stakeholders are aligned with the project's objectives and financial implications. Other options, such as competitor analysis or additional market trend analysis, may provide valuable insights but do not directly address the immediate concerns of substantial upfront investment and stakeholder buy-in. Applying for external funding could be considered later, but first, it's crucial to assess risks and internal stakeholder perspectives.

Correct Answer: Evaluate the Net Present Value (NPV) and Return on Investment (ROI) to assess financial viability

Evaluating the Net Present Value (NPV) and Return on Investment (ROI) is essential as it helps in understanding the financial viability of the project by comparing the present value of cash inflows with the present value of cash outflows. An NPV and ROI analysis is critical in benefits analysis to determine if the potential benefits outweigh the costs. The other options, while related to project management and might influence decision-making, do not directly answer the question of how to proceed when facing high implementation costs but significant potential revenue gains.