AAFM GLO_CWM_LVL_1 Exam - Topic 4 Question 55 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 55
Topic #: 4

Vinod is projecting an income stream providing Rs. 2,000/- for first 3 months, Rs. 3,200 for next 2 months, Rs. 4,500 for next 1 month, Rs. 3,700 for next 6months and Rs. 800 for 2 months thereafter. Please calculate the Present Value of this cash stream if rate of interest is 9%

A24465.92

B25817.12

C24,513.72

D23478.68

Show Suggested Answer

Suggested Answer: C

by Felicidad at Dec 26, 2022, 07:46 AM

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Gilma

7 months ago

I got 24,465.92, seems like a solid option!

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Mi

7 months ago

Wait, how do you even calculate that? Sounds complicated!

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Jerlene

8 months ago

I disagree, it should be closer to 25,800.

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Kristel

8 months ago

I think the present value will be around 24,500.

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Kattie

8 months ago

The cash flow amounts are interesting!

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Arletta

8 months ago

I feel like I might have mixed up the cash flow amounts; I hope I remember the right values when calculating the present value.

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Diego

8 months ago

I practiced a question with different cash flows too, and I think the key is to make sure I account for the timing of each payment correctly.

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Marcelle

8 months ago

I think I need to discount each cash flow separately, but I’m a bit confused about how to apply the interest rate for each period.

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Carin

8 months ago

I remember we did a similar question in class about calculating present value, but I’m not sure if I got the formula right for varying cash flows.

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Rana

8 months ago

This question seems straightforward, I think I can handle it.

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Alesia

8 months ago

The normal distribution is all about the bell curve, right? I think option A sounds like it's describing that, so I'll go with that one.

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Ashley

8 months ago

I remember learning about this in class, but I'm drawing a blank on the specifics. I'll have to carefully read through the answer choices to jog my memory and figure this out.

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Paola

8 months ago

Hmm, I'm a bit unsure about this one. Cost-benefit analysis could provide different types of information, so I'll need to think through each option to determine which one is the most accurate.

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Simona

9 months ago

Based on my understanding, the answer is B. Advisory services are designed to help customers plan their IT roadmap and strategic direction.

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