A project manager is assigned to a project that consolidates regional operations into a global operation. The sponsor says the unification could create efficiencies but is unsure about the return on investment (ROI) and asks the project manager's opinion. What should the project manager do?

The correct answer is to recommend performing a detailed cost-benefit analysis. Before committing to a project, especially one with uncertain ROI, a thorough financial assessment is crucial. This analysis will quantify potential benefits against estimated costs, providing the data needed to make an informed decision about the project's viability and whether it aligns with organizational strategic goals. Asking the sponsor to secure stakeholder commitments to reduce costs is premature without understanding the full financial picture; cost reduction is a tactic, not an initial assessment. Recommending a high-level feasibility assessment is a good first step in some cases, but given the sponsor's specific concern about ROI, a detailed cost-benefit analysis is more appropriate and provides the necessary depth. Explaining that the project manager's role is limited to demonstrating earned value (EV) from execution is incorrect; project managers are often involved in the initiation phase and providing input on project feasibility and value.