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AAFM CWM_LEVEL_2 Exam - Topic 6 Question 64 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 64
Topic #: 6
[All CWM_LEVEL_2 Questions]

Section C (4 Mark)

Read the senario and answer to the question.

Mr. Mehta buys machinery for Rs. 80000 which is to be replaced after a period of two years. The replacement cost at that time will be Rs. 90000. As a Chartered Wealth Manager advice Mr. Mehta now what he should do after two year for the replacement of the said machinery?

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Suggested Answer: A

by Billye at Aug 28, 2023, 06:22 PM

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Blair
4 months ago
Is it really worth it to replace it so soon?
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Margurite
4 months ago
Totally agree with A! Best way to handle it.
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Rochell
4 months ago
Wait, why sell the old machine first? That seems risky.
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Kimberlie
4 months ago
Option A sounds right! Buy new, sell old.
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Cathern
4 months ago
Mr. Mehta's machinery costs Rs. 80,000 now and Rs. 90,000 later.
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Moon
5 months ago
I think option A makes the most sense since it allows Mr. Mehta to have the new machinery ready while selling the old one, but I’m not entirely confident.
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Brigette
5 months ago
I feel a bit confused about the financial year references in the options. Did we cover how that affects tax implications?
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Billy
5 months ago
This question reminds me of a practice case where we had to analyze the costs of holding versus replacing assets. I think buying first and selling later could be beneficial.
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Candra
5 months ago
I remember discussing how timing the purchase and sale of machinery can impact cash flow, but I'm not sure which option is best here.
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Marvel
5 months ago
I'm pretty sure HP uses Scalable Print technology for their page-wide InkJet printing, so I'll go with option D.
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Shawn
5 months ago
This is a tricky one. The graph doesn't give me a clear indication of what type of process it's showing. I'll have to make an educated guess and hope I can eliminate some of the options.
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Lon
5 months ago
Hmm, I'm a bit confused about the distinction between failures and defects. I'll have to think this through carefully.
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Louis
5 months ago
The key here is to identify the most significant drawback of a cost-based approach. I think option D about long-term efficiencies is the best answer, but I'll double-check my understanding.
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Johna
5 months ago
I definitely recall LCSAJ being part of white-box testing, but I can't recall enough on condition testing to be sure.
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