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PMI PgMP Exam - Topic 1 Question 54 Discussion

The program selection committee presents several programs for approval:Program A is estimated to cost US$250,000, and has an annual cash inflow of US$75,000. Program B is estimated to cost US$150,000, and has an annual cash inflow of US$55,000. Program C is estimated to cost US$100,000, and has an annual cash inflow of US$45,000. Program D is estimated to cost US$200,000, and has an annual cash inflow of US$35,000.Which program was selected based solely on a three-year return on investment?
C) Program C
A) Program A
B) Program B
D) Program D

PMI PgMP Exam - Topic 1 Question 54 Discussion

Actual exam question for PMI's PgMP exam
Question #: 54
Topic #: 1
[All PgMP Questions]

The program selection committee presents several programs for approval:

Program A is estimated to cost US$250,000, and has an annual cash inflow of US$75,000. Program B is estimated to cost US$150,000, and has an annual cash inflow of US$55,000. Program C is estimated to cost US$100,000, and has an annual cash inflow of US$45,000. Program D is estimated to cost US$200,000, and has an annual cash inflow of US$35,000.

Which program was selected based solely on a three-year return on investment?

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Suggested Answer: C

by Ernest at Jun 28, 2022, 09:07 PM

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Louisa
7 months ago
A's ROI is definitely better than the others!
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Whitley
7 months ago
Program B looks decent too, though.
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Jerlene
7 months ago
Wait, are we sure about these numbers?
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Pete
8 months ago
Totally agree, A is the best choice.
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Herman
8 months ago
Program A has the highest cash inflow!
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Melita
8 months ago
I practiced a similar question where we had to find the payback period. I wonder if that applies here too?
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Rocco
8 months ago
If I recall correctly, Program A has the highest cash inflow, but I need to double-check the calculations for the others.
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Cyndy
8 months ago
I'm not entirely sure, but I remember something about comparing the initial costs with the cash inflows.
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Malcom
8 months ago
I think we need to calculate the total cash inflow for each program over three years to determine the ROI.
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Roslyn
8 months ago
I'm not totally sure about this one. I'll have to weigh the pros and cons of each dome type to decide.
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Beckie
8 months ago
Okay, let me think this through. I believe the main output is information to improve the Business Case, so I'll select option C.
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Delisa
8 months ago
Hmm, this seems like a tricky one. I'll need to think carefully about the key terms in the question to determine the right answer.
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