Crucial Exams

Project Management Professional Practice Question

A project manager is part of a committee selecting one of four potential projects. The organization's primary criterion for project selection is maximizing business value, which is measured by Net Present Value (NPV). However, a secondary strategic goal is to improve short-term cash flow by favoring projects with a quicker payback period. Given the following data, which project should the project manager recommend?

  • The project with an NPV of $290,000 and a 2-year payback period.

  • The project with an NPV of $250,000 and a 2.5-year payback period.

  • The project with an NPV of $310,000 and a 4-year payback period.

  • The project with an NPV of -$20,000 and a 1.5-year payback period.

Project Management Professional
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