Exam NPDP Topic 1 Question 100 Discussion

Actual exam question for PDMA's NPDP exam
Question #: 100
Topic #: 1
A weakness of NPV method for assesing projects in portfolio management is that:

Suggested Answer: D Vote an answer

A significant weakness of the NPV (Net Present Value) method for assessing projects in portfolio management is that it is difficult to determine accurate cash flow data for projects, especially early in the development process. NPV requires detailed and accurate forecasts of future cash flows, which can be challenging to obtain for projects in the early stages of development due to high uncertainty and variability in future performance and costs.

by Regina at Jun 16, 2026, 04:21 AM

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