PMI Project Management Professional Practice Question

A project manager must decide between two projects. Project A requires an initial investment of $100,000 with an expected return of $30,000 annually for four years. Conversely, Project B, matched in investment, is projected to return $50,000 in the first year, then $25,000 each following year. Considering equal risk and discount factors, which project is anticipated to have a more compelling rate of efficiency?

  • Project B, which generates higher returns earlier.

  • Neither project, as their IRR is equal.

  • Project A, with steady returns over time.

  • Both projects, due to identical overall monetary returns.

PMI Project Management Professional
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