PK0-005 Project Management Concepts Practice Question
A project has a Net Present Value (NPV) of -$5,000. What does this indicate?
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
✓
The project is not financially viable
A negative NPV means the project's costs exceed its benefits, indicating it is not financially viable.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
The project is not financially viable
Why this is correct
A negative NPV suggests the project may not be worthwhile.
- ✗
The project will generate a profit of $5,000
Why it's wrong here
Negative NPV indicates a loss.
- ✗
The project should be accepted because NPV is positive
Why it's wrong here
NPV is negative, not positive.
- ✗
The payback period is less than 5 years
Why it's wrong here
NPV does not directly indicate payback period.
Go deeper
Related to this question
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 →
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.