ExamTopics Logo
Mail Us[email protected]
Menu
Pmi Discussions
exam questions

Exam PgMP All Questions

View all questions & answers for the PgMP exam
Go to Exam

Exam PgMP topic 1 question 132 discussion

Actual exam question from PMI's PgMP
Question #: 132
Topic #: 1
[All PgMP Questions]

An organization is considering a new program. The business analyst believes that the benefits to the organization would equate to $1,550,000 in five years. If the rate of return for this program is six percent what is the maximum amount the organization should invest in this program?

  • A. $1,158,250
  • B. It depends on the internal decision making process.
  • C. $2,074,249
  • D. $1,550,000
Show Suggested Answer Hide Answer
Suggested Answer: A 🗳️
by Lch at April 13, 2020, 11:21 p.m.

Comments

Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.
Switch to a voting comment New
Submit Cancel
UHS
1 year ago
FV = 1550000 PV? PV=FV/((1+1.06)^5) = 1550000/1.338 = 1,158,250
upvoted 2 times
...
SyedCert
2 years ago
I think it's C Future Value (FV) = Present Value /(1/(1+r)^P) FV = =1550000/(1/(1+0.06)^5) FV = 2074249.645
upvoted 1 times
psvexam
1 year, 11 months ago
Future value is already given which is 1550000. So exchange values in your formula. Then you will get the lower current value, instead of 2074249.
upvoted 1 times
...
...
Lch
3 years, 9 months ago
Formula please
upvoted 2 times
...
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.

SaveCancel