PK0-005 Project Management Concepts Practice Question
A project manager is evaluating two potential projects. Project A has an NPV of $50,000, and Project B has an NPV of -$10,000. Which project should be selected based 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 a profitable project; a negative NPV indicates a loss. Select Project A.
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
Project B has negative NPV.
- ✗
Project B
Why it's wrong here
Negative NPV indicates loss.
- ✓
Project A
Why this is correct
Positive NPV indicates profit.
- ✗
Neither project
Why it's wrong here
Project A has positive NPV.
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