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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%

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Suggested Answer: C

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

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Gilma
10 months ago
I got 24,465.92, seems like a solid option!
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Mi
10 months ago
Wait, how do you even calculate that? Sounds complicated!
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Jerlene
11 months ago
I disagree, it should be closer to 25,800.
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Kristel
11 months ago
I think the present value will be around 24,500.
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Kattie
11 months ago
The cash flow amounts are interesting!
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Arletta
11 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
11 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
11 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
11 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
11 months ago
This question seems straightforward, I think I can handle it.
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Alesia
11 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
11 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
11 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
12 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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