Certificate in Business Data Analytics (CBDA) — Question 41

Based on the financial analysis that’s been completed by the analytics team, the business analysis professional reminds the team that the most financially feasible option is the one with the:

Answer options

• A. Highest ROI, lowest present value, highest NPV and lowest payback period
• B. Highest ROI, lowest present value, lowest NPV and highest payback period
• C. Highest ROI, highest present value, highest NPV, and lowest payback period
• D. Highest ROI, highest present value, lowest NPV and highest payback period

Correct answer: C

Explanation

The correct answer is C because the highest ROI indicates the best return on investment, while the highest NPV signifies a greater net benefit. A lower payback period is also desirable as it means the investment recoups its costs quicker, making it the most financially sound option. The other options either compromise on ROI, NPV, or have an unfavorable payback period.