PK0-005 Project Management Concepts Practice Question
A project manager is evaluating two potential projects. Project A has an NPV of $50,000, while Project B has an NPV of -$10,000. Which project should the organization select based solely on NPV?
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
✓
Project A
A positive NPV indicates the project is expected to generate profit, while a negative NPV suggests a loss. Therefore, Project A should be selected.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Both projects
Why it's wrong here
Only Project A is profitable based on NPV.
- ✗
Project B
Why it's wrong here
Negative NPV is unfavorable.
- ✓
Project A
Why this is correct
Positive NPV is favorable.
- ✗
Neither project
Why it's wrong here
Project A has a positive NPV, so it should be considered.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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