PK0-005 Project Management Concepts Practice Question
A project manager is evaluating two projects. Project A has an initial investment of $50,000 and expected annual returns of $15,000 for 5 years. Project B has an initial investment of $80,000 and expected annual returns of $22,000 for 5 years. Based on payback period, which project should be selected, and what is the payback period for that project?
⚠ Common exam trap
The trap is calculating correctly but then selecting the project with the longer payback, or miscalculating the division; candidates often rush and pick Project B because it has higher absolute returns, forgetting the question asks for the shorter payback period.
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, 3.33 years
Project A's payback period is calculated as initial investment divided by annual return: $50,000 / $15,000 = 3.33 years. Project B's payback is $80,000 / $22,000 = 3.64 years. Since Project A recovers its investment faster (3.33 years vs. 3.64 years), Project A should be selected, making option D correct.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Project A, 3.00 years
Why it's wrong here
Project A's payback is $50,000 ÷ $15,000 = 3.33 years, not 3.00, though A remains the correct project. The 3.00 figure is tempting because the returns divide neatly into round numbers, but payback demands the precise quotient rather than an approximate whole-year estimate.
- ✗
Project B, 3.64 years
Why it's wrong here
Project B's payback is $80,000 ÷ $22,000 = 3.64 years, but Project A recovers its $50,000 in 3.33 years, so the shorter payback wins. Selecting B is tempting because its larger annual return looks stronger, yet payback ranks by recovery speed, not absolute return.
- ✗
Project B, 3.00 years
Why it's wrong here
Project B's payback is 3.64 years, not 3.00, and even a correct 3.64 loses to Project A's 3.33 years. The figure is tempting because dividing $80,000 by $22,000 roughly suggests three years, but payback requires the exact quotient, and selection favours the earliest recovery.
- ✓
Project A, 3.33 years
Why this is correct
Payback divides initial investment by annual return: $50,000 ÷ $15,000 = 3.33 years for Project A, versus $80,000 ÷ $22,000 = 3.64 years for Project B. Project A recovers its investment sooner, satisfying the stem's payback criterion.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official CompTIA exam blueprint
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.