Microsoft Project is an example of software that is very powerful, but quite expensive. As a project manager, how would you justify the purchase of this software?

What will be an ideal response?

Students might suggest a cost-benefit analysis, similar to the financial analysis they do in a preliminary investigation or at other points in the SDLC. All three financial analysis tools (payback, return on investment, and net present value) would be applicable to a software purchase. The most difficult part would be estimating the anticipated benefits. Another interesting issue might be to ask students to agree or disagree with the notion that an investment can be similar to an insurance policy — it really doesn’t produce tangible benefits, but it prevents losses that might occur in its absence.