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Practice PMI PMP®PMP Business Environment Domain Practice ExamQuestion 25

Hard1 markShort Answer

Task 2: Evaluate and deliver project benefits and valueBusiness EnvironmentValueTask 2

PMP · Question 25 · Task 2: Evaluate and deliver project benefits and value

A project manager is calculating the time it will take for the project's cumulative benefits to equal the initial investment. What is the name of this financial metric?

How to approach this question

Provide the specific financial term.

Full Answer

Payback Period

The Payback Period is the amount of time required for an investment to generate cash flows sufficient to recover its initial cost.

Common mistakes

Confusing with ROI or Break-even point.

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