easy · Project Management Professional hybrid
A project manager at Peakstone Rail is evaluating two potential projects. Project A has an NPV of 250,000 and a payback period of 12 months. Project B has an NPV of400,000 and a payback period of 18 months.
Based on the NPV criterion alone, which project should be selected?
- Project B.
- Both, because they both have a positive NPV.
- Neither, as both projects have a payback period of over one year.
- Project A.
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