CAPM Business Analysis Frameworks Practice Question
An organization is considering a new software development project. The business analyst is asked to determine if the project is financially viable. Which analysis is most appropriate?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
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Cost-Benefit Analysis
Cost-Benefit Analysis directly assesses financial viability by comparing costs and benefits. Feasibility Study is broader, SWOT evaluates environment, and Business Case justifies the project but may not focus solely on financials.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Cost-Benefit Analysis
Why this is correct
Cost-benefit analysis quantifies expected costs against anticipated benefits, producing financial metrics such as ROI, NPV or payback period. It directly satisfies the constraint of determining whether the proposed software development project is financially viable before committing organisational resources.
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Feasibility Study
Why it's wrong here
A feasibility study assesses whether a project is technically, operationally and legally achievable, not whether it is financially worthwhile. It is tempting because it sounds like the broadest viability check, and it would be correct when the question asks whether the project can be delivered at all.
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Business Case
Why it's wrong here
A business case justifies investment by weighing costs, benefits and strategic fit, but it does not itself compute financial viability. It is tempting because it is the document that ultimately records the funding decision, and it would be the right deliverable once the financial analysis has already been completed.
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SWOT Analysis
Why it's wrong here
SWOT analysis maps internal strengths and weaknesses against external opportunities and threats; it produces no monetary figures such as ROI, NPV or payback. It is tempting as a strategic planning tool, and it would be the right choice when assessing competitive position rather than financial viability.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CAPM practice question is part of Courseiva's free PMI certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CAPM exam.