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BBC Practitioner Practice Questions - APMG Better Business Cases Practitioner Exam

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A project team is applying optimism bias to a capital cost estimate in an Outline Business Case for a new road project. The HM Treasury Green Book supplementary guidance gives an upper bound of 44% for standard civil engineering works. The base estimate before risk is £20 million. What is the optimism-bias-adjusted cost?
Correct Answer:
£28.8 million

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