PMI Project-Management-Professional PMP Question # 35 Topic 4 Discussion

The project manager should calculate the costs for each option in each location and compare the net present value (NPV) for each. This is because NPV is a comprehensive financial metric that takes into account both the timing and the amount of cash flows, providing a complete picture of the profitability and financial feasibility of the project. It is a standard method for using the time value of money to appraise long-term projects. By comparing the NPV of each option, the project manager can identify the most financially viable option. References: Project Management Institute. (2021). A Guide to the Project Management Body of Knowledge (PMBOK® Guide)–Seventh Edition. Project Management Institute, Inc.