The answer is to present the updated business case and recommend a formal decision review with the steering committee. This is correct because project management best practices, particularly in a hybrid approach, demand that decisions be driven by current business value rather than sunk costs; the sponsor’s insistence on continuing due to resources already spent is a classic sunk cost fallacy, which should never override objective analysis. On the PMP exam, this scenario tests your understanding of the "business case no longer valid sponsor insists continue sunk cost" trap, where the distractor is often to escalate to the sponsor’s manager or simply follow the sponsor’s directive. The key is remembering that the project manager’s duty is to the organization’s best interest, not to past expenditures. A helpful memory tip is "Sunk costs are sunk, steer to the steering committee" — when the business case fails, you don’t follow the money; you follow the formal review process.
PMP Practice Question: Business Environment: strategy and project benefits
This PMP practice question tests your understanding of business environment: strategy and project benefits. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Your project is using a hybrid approach. The business case is no longer valid due to a change in market conditions, but the sponsor insists on continuing because significant resources have already been spent. What is the best action?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "best"
Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Present the updated business case and recommend a formal decision review with the steering committee
The project manager should present the updated business case and recommend a formal review to decide whether to continue or terminate. Sunk costs should not drive decisions.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Present the updated business case and recommend a formal decision review with the steering committee
Why this is correct
The PM should provide objective information and let governance decide.
Clue confirmation
The clue word "best" in the question point toward this answer.
Related concept
Static NAT maps one inside address to one outside address.
✗
Increase the project budget to improve the business case
Why it's wrong here
Increasing budget does not improve the business case if market conditions have changed.
✗
Stop the project immediately to prevent further losses
Why it's wrong here
Stopping without formal review and stakeholder alignment may be premature.
✗
Continue the project as planned to avoid wasting invested resources
Why it's wrong here
Continuing based on sunk costs is not a valid rationale; decisions should be based on future benefits.
Common exam traps
Common exam trap: NAT rules depend on direction and matching traffic
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
How to think about this question
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
KKey Concepts to Remember
Static NAT maps one inside address to one outside address.
PAT allows many inside hosts to share one public address using ports.
Inside local and inside global describe the private and translated addresses.
NAT ACLs identify traffic for translation, not always security filtering.
TExam Day Tips
→Identify inside and outside interfaces first.
→Check whether the scenario needs static NAT, dynamic NAT or PAT.
→Do not confuse NAT matching ACLs with normal packet-filtering intent.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Real-world example
How this comes up in practice
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this PMP question in full detail.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related PMP NAT questions on configuration and troubleshooting.
Business Environment: strategy and project benefits — This question tests Business Environment: strategy and project benefits — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: Present the updated business case and recommend a formal decision review with the steering committee — The project manager should present the updated business case and recommend a formal review to decide whether to continue or terminate. Sunk costs should not drive decisions.
What should I do if I get this PMP question wrong?
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related PMP NAT questions on configuration and troubleshooting.
Are there clue words in this question I should notice?
Yes — watch for: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
What is the key concept behind this question?
Static NAT maps one inside address to one outside address.
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Question Discussion
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