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APMG-International Exam Better-Business-Cases-Practitioner Topic 3 Question 8 Discussion

Actual exam question for APMG-International's Better-Business-Cases-Practitioner exam
Question #: 8
Topic #: 3
[All Better-Business-Cases-Practitioner Questions]

The Financial Appraisal for the new campus includes the cost of inflation over the life of the scheme.

Is this an appropriate application of the Five Case Model for the project?

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Suggested Answer: A

by Theodora at Jul 05, 2024, 06:45 PM

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Wilbert
10 months ago
I see your point, Hana. Including the cost of inflation in the Financial Appraisal could provide a more accurate picture of the project's financial viability.
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Hana
10 months ago
But wouldn't the cost of inflation be an ongoing cost to the new campus over the life of the scheme?
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William
11 months ago
I agree with Daron, it's not appropriate to include the cost of inflation in the Financial Appraisal.
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Leatha
11 months ago
Option B makes the most sense to me. Inflation should be considered in the Economic Appraisal, not the Financial Appraisal. Although, maybe the exam writer is trying to trick us with this one!
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Hana
11 months ago
Hmm, I was going to say D, but I guess that's not quite right. The assets decreasing in value is a separate issue from inflation costs.
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Geraldine
10 months ago
B) No, because it is the Economic Appraisal that should include the cost of inflation.
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Lino
10 months ago
A) No, because the Financial Appraisal should be based on constant prices.
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Daron
11 months ago
I think the Financial Appraisal should be based on constant prices.
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Shawn
11 months ago
I think C is the right answer. Accounting for inflation is crucial for understanding the ongoing costs of the new campus.
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Steffanie
11 months ago
Option B is the correct answer. The Economic Appraisal, not the Financial Appraisal, should include the cost of inflation over the life of the scheme.
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Irene
10 months ago
B
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Nettie
10 months ago
B
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Delila
10 months ago
A
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Tran
11 months ago
A
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