ASQ CMQ-OE Exam - Topic 2 Question 89 Discussion

Actual exam question for ASQ's CMQ-OE exam

Question #: 89
Topic #: 2

[All CMQ-OE Questions]

Refer to the exhibit.

The formula above is known as the

Aannual payback

Bbenefit-cost ratio

Cnet present value

Dinternal rate of return (IRR)

Show Suggested Answer

Suggested Answer: C

by Stefany at Jul 06, 2025, 03:33 AM

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Lorean

7 months ago

Totally agree, it's all about the NPV!

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Salome

7 months ago

NPV is used to assess profitability.

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Amber

7 months ago

That's definitely the net present value formula!

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Colby

7 months ago

Wait, are we sure that's right? Seems off to me.

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Isadora

7 months ago

I thought it was the internal rate of return?

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Pearline

8 months ago

The annual payback concept sounds familiar, but I’m confused about how it fits with the options given.

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Lenna

8 months ago

I feel like we covered the internal rate of return in class, but I can't remember how it relates to this formula.

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Chu

8 months ago

I remember practicing questions on benefit-cost ratios, and this looks somewhat similar, but I can't recall the exact details.

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Daniel

8 months ago

I think this formula might be related to the net present value, but I'm not entirely sure.

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Mozell

9 months ago

I remember learning about these types of financial metrics. If I can just recall the definitions, I think I can nail this question.

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Keneth

9 months ago

Ugh, finance formulas are not my strong suit. I'll have to guess on this one and hope for the best.

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Valda

9 months ago

Okay, I recognize this as one of the key financial analysis concepts we covered in class. I'm pretty confident I can identify the correct answer.

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Clay

9 months ago

Hmm, I'm not totally sure about this one. The formula seems familiar, but I can't quite place it. I'll have to think it through step-by-step.

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Paulene

9 months ago

This looks like a standard finance formula, so I should be able to figure this out. Let me think through the options carefully.

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Shaun

11 months ago

Ah, the old 'annual payback' trick. Nice try, but I'm not falling for that one. IRR all the way!

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Paola

10 months ago

I agree, IRR is the way to go.

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Isabella

11 months ago

Internal rate of return (IRR), no doubt. This is the formula I've been studying for weeks. Time to put that knowledge to the test!

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Marjory

10 months ago

A) annual payback

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Stevie

11 months ago

Haha, this is like a trick question. It's obviously the benefit-cost ratio - who doesn't love a good cost-benefit analysis?

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Helaine

10 months ago

User 2: Yeah, that formula is definitely used for cost-benefit analysis.

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Tasia

10 months ago

User 1: I think it's the benefit-cost ratio.

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Cristy

12 months ago

Definitely the net present value. This formula is all about discounting future cash flows to their present value.

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Pearly

10 months ago

User 3: So, the answer is C) net present value.

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Wai

11 months ago

User 2: Yeah, I agree. It's all about discounting future cash flows.

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Donette

11 months ago

User 1: I think it's the net present value.

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Demetra

1 year ago

I remember studying this, it's actually the annual payback.

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Dahlia

1 year ago

I'm not sure, but I think it could be the benefit-cost ratio.

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Dannie

1 year ago

The formula looks like the internal rate of return (IRR) to me. That's the only one that makes sense given the variables involved.

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Tambra

11 months ago

Yes, I agree. The variables match up with the IRR formula.

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Jaime

11 months ago

I think you're right, it does look like the internal rate of return (IRR).

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Jovita

1 year ago

I believe it is the internal rate of return (IRR).

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Lavonda

1 year ago

I think the formula is the net present value.

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