PK0-005 Project Management Concepts Practice Question
A company wants to select a project based on the time it takes to recover the initial investment. Which project selection method should be used?
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
✓
Payback period
Payback period calculates the time to recover the investment.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Net Present Value (NPV)
Why it's wrong here
NPV measures profitability in present value.
- ✗
Internal Rate of Return (IRR)
Why it's wrong here
IRR is the discount rate that makes NPV zero.
- ✗
Cost-benefit analysis
Why it's wrong here
Cost-benefit compares costs and benefits, not specifically time to recover investment.
- ✓
Payback period
Why this is correct
Payback period is the time to recover initial investment.
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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.