P. 1
24858698 Project Management Professional Exam PMP

24858698 Project Management Professional Exam PMP

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Published by: suzeet1 on Aug 04, 2013
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You are the project manager at Happy Coffee Café, a rapidly growing
franchise selling premium blended coffee. Currently, your company is
planning on opening additional stores through the United states. Your
target markets primarily include densely populated metropolitan areas.

Your company is evaluating different areas for expansion, including
New York, San Francisco, and Seattle. Based on your market analysis
you have obtained the following information:

New York-IRR (45%), payback period (1.5 years)
San Francisco-IRR (32%), payback period (1.1 years)
Seattle-IRR (36%), payback period (0.75 years)

Based on this data which area is best for Happy Coffee Café?
A.San Francisco since the IRR is the lowest
B.New York since IRR is highest
C.Seattle since payback period is shortest
D.New York since the payback period is the longest

Answer: B

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