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APMG-International Better-Business-Cases-Practitioner Exam - Topic 5 Question 41 Discussion

Which 2 observations correctly evaluate the affordability of the Pittville project?
C) The surplus Income forecast in Year 1 is sufficient to cover the deficit forecast in Year 2. and E) If expenditure and income continue at the same rate, each subsequent year should return a surplus of 1 million.
A) The Financial Appraisal shows that this scheme is unaffordable.
B) At the end of Year 6, E6 million of the initial spending costs will have been recovered.
D) The revenue budget should show how long it will take for the surplus income to cover the initial cost of building the new campus.

APMG-International Better-Business-Cases-Practitioner Exam - Topic 5 Question 41 Discussion

Actual exam question for APMG-International's Better-Business-Cases-Practitioner exam
Question #: 41
Topic #: 5
[All Better-Business-Cases-Practitioner Questions]

Which 2 observations correctly evaluate the affordability of the Pittville project?

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Suggested Answer: C, E

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Dorothy
2 days ago
Totally agree with B, recovering E6 million is a good sign!
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Antione
7 days ago
A says it's unaffordable, right?
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Lynelle
12 days ago
I’m a bit confused about option E; it seems like a straightforward projection, but I’m not sure if it really assesses the overall affordability of the project.
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Marquetta
17 days ago
I feel like option D is important too, as it relates to understanding the timeline for recovering costs, but I can't recall if it directly evaluates affordability.
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Daron
22 days ago
I think option C sounds familiar because we practiced similar questions about balancing income and deficits in our last session.
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Silva
2 months ago
I remember we discussed how the financial appraisal is crucial for determining affordability, but I'm not entirely sure if option A is the only indicator.
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