PMI-ACP Preparation Exam Mocktest3

Question 35 of 120

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Two projects are currently being analyzed. Project A will yield a net profit of $300,000 at the end of the second year. Project B will yield a net profit of $310,000 by the end of the fourth year. Assuming a 3% interest rate, which of the following is correct?

Project B is financially more attractive than Project A.

Project B has a PV that is $7,348 higher than Project A’s PV.

Project A has a PV that is $7,348 higher than Project B’s PV.

These projects are equal in net returns.

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