Free PMI Project Management Professional (PMP) Practice Question

The correct answer is that Project A is financially more attractive. The Benefit-Cost Ratio (BCR) is a financial metric used to evaluate the viability of a project. It is calculated by dividing the present value of benefits by the present value of costs. A BCR greater than 1 indicates that the benefits outweigh the costs, making the project financially attractive. In this case, Project A has a BCR of 1.2, which is greater than 1, indicating that its benefits exceed its costs. Project B, with a BCR of 0.9, has costs that exceed its benefits, making it less financially attractive. While other factors may influence project selection, from a purely financial perspective based on BCR, Project A is the more attractive option.