Courseiva
Project Management ConceptshardMultiple ChoiceObjective-mapped

PK0-005 Project Management Concepts Practice Question

A company is considering a project with an initial investment of $100,000 and expected annual cash inflows of $30,000 for 5 years. The discount rate is 10%. What is the approximate Net Present Value (NPV)? (Present value of annuity factor for 5 years at 10% is 3.791)

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

$13,730

NPV = Present value of inflows - Initial investment. PV of inflows = $30,000 * 3.791 = $113,730. NPV = $113,730 - $100,000 = $13,730.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • $50,000

    Why it's wrong here

    That is the sum of undiscounted inflows, not NPV.

  • -$13,730

    Why it's wrong here

    The calculation gives positive NPV.

  • $150,000

    Why it's wrong here

    That is total undiscounted inflows.

  • $13,730

    Why this is correct

    Correct. $30,000 * 3.791 = $113,730; $113,730 - $100,000 = $13,730.

About these practice questions

This PK0-005 question is part of Courseiva's 980-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. Learn why practice questions differ from exam dumps →

How Courseiva writes practice questions · Editorial policy

JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This PK0-005 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PK0-005 exam.