PMP / CAPM exam Question bank

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Payback Period / IRR / NPV

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?

 

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