Project Management Professional (PMP) Exam Practice – Question1441

Increased attention to return on investment (ROI) now requires you to complete a financial analysis of the payback period on your project. Such an analysis identifies the______________


A.
Ratio of discounted revenues over discounted costs
B. Future value of money invested today
C. Amount of time before net cash flow becomes positive
D. Point in time where costs exceed profit

Correct Answer: C

Explanation:

Explanation:
Payback period analysis determines the time required for a project to recover the investment in it and become profitable. A weakness of this approach is a lack of emphasis on the magnitude of the profitability.