PRINCE2-PRACTITIONER Processes Practice Question
During the Initiating a Project process, the Project Manager is refining the Business Case. What key financial metric is typically evaluated to ensure the project represents value for money?
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
✓
Return on Investment (ROI) or Net Present Value (NPV)
During IP, financial metrics such as Return on Investment (ROI), Net Present Value (NPV), or payback period are refined in the Business Case.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Daily checkpoint report frequency
Why it's wrong here
Checkpoint report frequency is a management control metric, not a financial valuation metric.
- ✓
Return on Investment (ROI) or Net Present Value (NPV)
Why this is correct
Financial appraisal techniques like ROI and NPV are used in the Business Case during IP.
- ✗
Team member daily hourly wages
Why it's wrong here
Hourly wages are operational resource costs, not top-level financial appraisal metrics for business justification.
- ✗
Number of open risks in the Risk Register
Why it's wrong here
Risk count measures uncertainty, not financial return.
About these practice questions
One of 297 original PRINCE2-PRACTITIONER practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed August 2026 · checked against the official AXELOS / PeopleCert exam blueprint
This PRINCE2-PRACTITIONER practice question is part of Courseiva's free AXELOS / PeopleCert 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 PRINCE2-PRACTITIONER exam.