PK0-005 Practice Question: Basics of IT Infrastructure and IT Project Management
A project manager is evaluating potential IT infrastructure projects. Which two project selection methods consider financial return? (Choose two.)
⚠ Common exam trap
Many candidates confuse 'financial return' with any evaluation method that includes a financial component, but weighted criteria and scoring models are multi-criteria decision tools that do not specifically measure financial return as their primary output.
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
✓
Cost-benefit analysis
Cost-benefit analysis (A) is a financial project selection method because it compares the total expected costs of a project against its total expected benefits, typically expressed in monetary terms, to determine whether the investment yields a positive net return. Payback period (B) is also a financial method because it calculates how long it takes for the cumulative cash inflows from a project to recover the initial investment, directly measuring financial return timing. Expert judgment (C) is not inherently financial; it relies on the experience and knowledge of subject matter experts and can be applied to any selection criterion. Weighted criteria (D) and scoring model (E) are multi-criteria decision techniques that may include financial factors but are not exclusively or primarily financial return methods, as they typically combine weighted qualitative and quantitative factors into a single score.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Cost-benefit analysis
Why this is correct
Cost-benefit analysis quantifies expected financial return by comparing projected benefits against implementation and operating costs, producing a comparable value for each candidate project. This directly satisfies the stem's criterion of a selection method that considers financial return.
- ✓
Payback period
Why this is correct
Payback period measures how quickly cumulative cash inflows recover the initial investment, ranking projects by financial return timing. It satisfies the stem's requirement for a selection method grounded in financial return, unlike scoring models based on non-financial weighted criteria.
- ✗
Expert judgment
Why it's wrong here
Expert judgment draws on specialist experience to assess feasibility and risk; it generates no calculated monetary return such as NPV, ROI or payback period. It is used to validate estimates and fill data gaps. Financial return requires quantitative cost-benefit or discounted cash-flow analysis.
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Weighted criteria
Why it's wrong here
Weighted criteria scoring multiplies ratings by importance weights to compare alternatives, yet it produces no monetary return figure like NPV, ROI or payback. It suits ranking projects against mixed objectives. Methods that consider financial return calculate cash flows and discount them over time.
- ✗
Scoring model
Why it's wrong here
A scoring model ranks options against weighted qualitative and quantitative factors, but it does not compute monetary return such as net present value, ROI or payback period. It is chosen when comparing dissimilar projects on multiple criteria. Financial return is assessed through cost-benefit analysis or ROI calculations instead.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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