PMI-ACP · Question #386
PMI-ACP Question #386: Real Exam Question with Answer & Explanation
The correct answer is B: Payback Period. The Payback Period is the length of time required to recover the initial cost of a project investment from its generated returns. Net Present Value (A) calculates the value of future cash flows in today's dollars. Earned Value (C) is a project performance measurement technique. R
Question
The length of time to recover the cost of a project investment is the:
Options
- ANet Present Value
- BPayback Period
- CEarned Value
- DROI
Explanation
The Payback Period is the length of time required to recover the initial cost of a project investment from its generated returns. Net Present Value (A) calculates the value of future cash flows in today's dollars. Earned Value (C) is a project performance measurement technique. ROI (D) — Return on Investment — measures the profitability of an investment as a percentage, not the time to recoup costs.
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