Crucial Exams

Project Management Professional Practice Question

A project selection committee is reviewing a business case with a calculated Benefit-Cost Ratio (BCR) of 0.9. What does this BCR indicate, and what is the most appropriate recommendation?

  • The project is marginally profitable, and the recommendation should be to proceed with caution.

  • The project will break even, so the decision should be based on non-financial factors.

  • The projected benefits do not outweigh the costs, and the recommendation should be to reject or re-evaluate the project.

  • The ratio is incomplete without the Internal Rate of Return (IRR), so no recommendation can be made yet.

Project Management Professional
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