PMI-ACP · Question #30
The PMO has asked you to generate some financial information to summarize the business benefits of your project. To best describe how much money you hope the project will return, you should show an es
The correct answer is B. Return on investment (ROI.. Return on Investment (ROI) directly measures the financial return of a project relative to its cost, expressed as a percentage - it answers the question 'how much do we get back for what we spend?' IRR (A) expresses return as an interest rate, which is useful for comparing projec
Question
The PMO has asked you to generate some financial information to summarize the business benefits of your project. To best describe how much money you hope the project will return, you should show an estimate of:
Options
- AInternal rate of return (IRR.
- BReturn on investment (ROI.
- CGross domestic product (GDP.
- DNet present value (NPV.
How the community answered
(28 responses)- B93% (26)
- C4% (1)
- D4% (1)
Explanation
Return on Investment (ROI) directly measures the financial return of a project relative to its cost, expressed as a percentage - it answers the question 'how much do we get back for what we spend?' IRR (A) expresses return as an interest rate, which is useful for comparing projects but less intuitive as a stand-alone return figure. GDP (C) is a macroeconomic measure with no relevance to project financials. NPV (D) shows the present value of future cash flows in dollars but focuses on time-adjusted value rather than the straightforward concept of 'how much money the project will return.'
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