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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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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.