Crucial Exams

Project Management Professional Practice Question

A project manager is evaluating two potential projects. Project A has an initial investment of $500,000 and is expected to generate annual cash flows of $150,000. Project B requires an initial investment of $400,000 and is projected to generate annual cash flows of $125,000. Which project has the shorter payback period?

  • Cannot be determined with the given information

  • Project B

  • Both projects have the same payback period

  • Project A

Project Management Professional
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