Scan QR code or get instant email to install app
Question:
Which project should you select and why?
A
Alternative B, because its yield is higher than Alternative A’s yield.
explanation
This question requires discounted cash flow analysis to compare the value of Alternative A to Alternative B. Applying the present value formula to Alternative A, the formula is calculated this way: $21,000,000 / (1 + .05)^2 = $19,047,619. Alternative B is calculated this way: $29,000,000 / (1 + .05)^3 = $25,051,831.
Take more free practice tests for other PMP topics with our pmp exam preparation now!
Related Information
Comments
edenegayle
4 years ago
I’m not sure how this app is accurate, simple & effective along with FREE? But I’m so grateful. Getting professional qualifications can be so expensive & daunting to tackle. This test taking, review-type app has been so extremely helpful. The structure of the app is so intuitive. It definitely helps with giving you an understanding of why something is wrong / right & making sure it sticks. Absolutely love it & I'm so grateful.
nikhildv
3 years ago
This app has been a great help, It gives perspective with the answers and that helps you prepare ... thanks for sharing it.
kerbs2CB
3 years ago
This app helped me pass my PMP today. The questions are not exactly as they are on the test but they help you with gaining the knowledge you need to pass the test! And it is free! I would recommend this to anyone studying for the PMP.