Program Management Professional (PgMP) — Question 81

You are the program manager for your organization. Management would like to consider the present value for your program. If your program is predicted to be worth $450,000 in two years what is the present value of the program if the interest rate is six percent?

Answer options

Correct answer: A

Explanation

The correct answer is A, $400,498, which is calculated by discounting the future value of $450,000 back to the present using the formula for present value. The other options do not accurately reflect this calculation at a six percent interest rate, making them incorrect.