Free PMI Project Management Professional (PMP) Practice Question

The statement is false. A Benefit-Cost Ratio (BCR) of 0.9 indicates that the project is not financially viable. The BCR is calculated by dividing the present value of benefits by the present value of costs. When the BCR is less than 1, it means the costs outweigh the benefits. In this case, a BCR of 0.9 suggests that for every dollar invested, the project is only expected to return 90 cents in benefits. For a project to be considered financially viable, its BCR should be greater than 1, indicating that the benefits exceed the costs. Projects with a BCR greater than 1 are generally considered for implementation, while those with a BCR less than 1 are typically rejected or require significant modification to improve their financial viability.