Assuming all projects require the same amount of up-front investment, the project with the highest ______________ would be considered the best and undertaken first.

The correct answer is B. Internal Rate of Return (IRR). When projects have identical up-front investment costs, IRR is the best ranking metric because it expresses return as a percentage rate, making projects directly comparable regardless of scale. A higher IRR means a better return per dollar invested. NPV gives an absolute dollar v

Submitted by klara.se· Apr 18, 2026Value-driven Delivery

Question

Options

AEarned Value Management (EVM)
BInternal Rate of Return (IRR)
CNet Present Value (NPV)
DBudget at Completion (BAC)

How the community answered

(45 responses)

A
2% (1)
B
82% (37)
C
7% (3)
D
9% (4)

Explanation

When projects have identical up-front investment costs, IRR is the best ranking metric because it expresses return as a percentage rate, making projects directly comparable regardless of scale. A higher IRR means a better return per dollar invested. NPV gives an absolute dollar value (better for comparing magnitude of return but requires knowing the discount rate). EVM is a performance monitoring tool, and BAC is simply the total planned budget - neither is used for project selection.

Topics

#Project Selection#Financial Metrics#Internal Rate of Return (IRR)#Value Maximization

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