Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

AAFM GLO_CWM_LVL_1 Exam - Topic 4 Question 55 Discussion

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%
C) 24,513.72
A) 24465.92
B) 25817.12
D) 23478.68

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
[All GLO_CWM_LVL_1 Questions]

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%

Show Suggested Answer Hide Answer
Suggested Answer: C

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

Limited Time Offer

25%

Off

Get Premium GLO_CWM_LVL_1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Gilma
9 months ago
I got 24,465.92, seems like a solid option!
upvoted 0 times
...
Mi
9 months ago
Wait, how do you even calculate that? Sounds complicated!
upvoted 0 times
...
Jerlene
9 months ago
I disagree, it should be closer to 25,800.
upvoted 0 times
...
Kristel
9 months ago
I think the present value will be around 24,500.
upvoted 0 times
...
Kattie
9 months ago
The cash flow amounts are interesting!
upvoted 0 times
...
Arletta
10 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.
upvoted 0 times
...
Diego
10 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.
upvoted 0 times
...
Marcelle
10 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.
upvoted 0 times
...
Carin
10 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.
upvoted 0 times
...
Rana
10 months ago
This question seems straightforward, I think I can handle it.
upvoted 0 times
...
Alesia
10 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.
upvoted 0 times
...
Ashley
10 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.
upvoted 0 times
...
Paola
10 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.
upvoted 0 times
...
Simona
10 months ago
Based on my understanding, the answer is B. Advisory services are designed to help customers plan their IT roadmap and strategic direction.
upvoted 0 times
...

Save Cancel