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PMP Certification Mix Questions Test 2
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© examsnet.com
Question : 11
Total: 70
Increased attention to return on investment (ROI) now requires you to complete a financial analysis of the payback period on your project. Such an analysis identifies the______________
Ratio of discounted revenues over discounted costs
Future value of money invested today
Amount of time before net cash flow becomes positive
Point in time where costs exceed profit
Validate
Solution:
Payback period analysis determines the time required for a project to recover the investment in it and become profitable. A weakness of this approach is a lack of emphasis on the magnitude of the profitability.
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