Program Management Professional (PgMP) — Question 147

You are the program manager for your organization. This program will last for two years and has eight projects. The cost of your program is $4 million and there are some risk concerns that may affect the overall cost of the program. Management is concerned with how long it will take the program to reach the management horizon. What is management horizon also known as?

Answer options

• A. Payback period
• B. Cost performance index
• C. Cost-to-benefits ratio
• D. Return on investment

Correct answer: A

Explanation

The correct answer is A, Payback period, which refers to the time it takes for an investment to generate an amount of income equal to the cost of the investment. Options B, C, and D refer to different financial metrics that measure performance or returns but do not specifically address the timeframe for recovering the initial investment.