PMI Professional In Business Analysis PMI Pba · Free Practice Question Easy
Question 29
A determination that further investment in the project cannot be cost justified based on the return that investment would bring may be based on:
- A Law of diminishing returns.
- B Rule of seven.
- C Sunk costs.
- D Net present value analysis.
Reveal correct answer
Correct answer: A
Explanation
The law of diminishing returns states that after a certain point, adding more input will not produce a proportional increase in productivity.Discussion
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