PK0-005 Project Management Concepts Practice Question
A project manager is selecting a project selection method. Which TWO methods evaluate the profitability of a project? (Choose TWO.)
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
✓
Net Present Value (NPV)
NPV and ROI are both profitability measures. Payback period and IRR are also financial, but payback period focuses on time, and IRR is a rate.
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 it's wrong here
Cost-benefit analysis compares costs and benefits but is broader.
- ✗
Internal Rate of Return (IRR)
Why it's wrong here
IRR is a discount rate, not a direct profitability measure.
- ✗
Payback period
Why it's wrong here
Payback period measures time to recover investment, not profitability.
- ✓
Net Present Value (NPV)
Why this is correct
NPV calculates the net monetary value.
- ✓
Return on Investment (ROI)
Why this is correct
ROI measures profitability as a percentage.
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