Program Management Professional (PgMP) — Question 105
An organization is considering a new program. The program has a cost of $1,950,000 and will last for three years. What is the minimum future value this organization should expect to receive from this program if it is initiated and the rate of return is six percent?
Answer options
- A. $2,322,481
- B. $1,950,000
- C. $2,067,000
- D. $1,950,001
Correct answer: A
Explanation
The correct answer, $2,322,481, is calculated using the future value formula, which considers the initial investment and the rate of return over the specified period. The other options do not account for the growth of the investment over three years at a 6% return, making them incorrect.