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APMG-International Better-Business-Cases-Practitioner Exam - Topic 4 Question 42 Discussion

Using the Scenario, answer the following questions about the Financial Appraisal of the option to build a new campus onthe site of the Old Fire Station Headquarters.Decide whether the action taken represents an appropriate application of the Five Case Model for this project and select the responsethat supports your decision.The cost of inflation is estimated to be 2% per annum.Should the project manager use this information when preparing the Financial Appraisal for this scheme?
C) Yes, because the Financial Appraisal should include the cost of inflation.
A) No, because the Financial Appraisal should include constant or real prices.
B) No, because the Financial Appraisal should exclude the cost of general inflation and depreciation.
D) Yes, because inflation will reduce the cost of the scheme over time.

APMG-International Better-Business-Cases-Practitioner Exam - Topic 4 Question 42 Discussion

Actual exam question for APMG-International's Better-Business-Cases-Practitioner exam
Question #: 42
Topic #: 4
[All Better-Business-Cases-Practitioner Questions]

Using the Scenario, answer the following questions about the Financial Appraisal of the option to build a new campus on

the site of the Old Fire Station Headquarters.

Decide whether the action taken represents an appropriate application of the Five Case Model for this project and select the response

that supports your decision.

The cost of inflation is estimated to be 2% per annum.

Should the project manager use this information when preparing the Financial Appraisal for this scheme?

Show Suggested Answer Hide Answer
Suggested Answer: C

by Deeanna at May 27, 2026, 11:34 PM

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