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AFP CTP Exam - Topic 4 Question 29 Discussion

Actual exam question for AFP's CTP exam

Question #: 29
Topic #: 4

[All CTP Questions]

Which of the following is NOT a drawback to using ROI as a performance measure?

AIt may be misleading when cash flows are not evenly distributed over time.

BIt does not consider the profit generated by a project.

CIt does not include a charge for cost of capital.

DIt may lead to rejection of a positive NPV project.

Show Suggested Answer

Suggested Answer: B

by Freeman at Sep 28, 2026, 05:49 PM

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