Payback Period / IRR / NPV

Submitted by alexxxmk on Sat, 11/09/2013 - 23:28

Which and Why? 

 

1. You have project A with a Payback Period of 1 year and a IRR of 12%. And project B with a Payback Period of 2 years and a IRR of 20%. Which one will you choose? Project A or B?

 

2. You have project A with a Payback Period of 1 year and a NPV of $200,000. And project B with a Payback Period of 2 years and NPV of $400,000. Which one will you choose? Project A or B?

 
Forums: 
PMP / CAPM exam Question bank
  • Log in to post comments
  • 498 reads

Bouthj

Sun, 11/10/2013 - 10:21

Even if they take longer to re-imburse, they are better investments. 

My thoughts anyways