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CIMAPRA17-BA2-1 Exam - Topic 1 Question 10 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 10
Topic #: 1

[All CIMAPRA17-BA2-1 Questions]

The concept of the time value of money:

Arecognises the fact that a cash flow received today will always be worth more than a larger cash flow received in the future.

Bis used for making short term decisions.

Cdetermines the higher interest rates that must be paid on longer term loans.

Drecognises the fact that earlier cash flows are worth more because they can be reinvested.

Show Suggested Answer

Suggested Answer: A

by Angella at May 03, 2022, 07:33 PM

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Portia

10 months ago

I thought it was just for long-term decisions, not short-term.

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Phuong

10 months ago

Higher interest rates on long-term loans? That's a good point!

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Shelba

11 months ago

Wait, is it really always more valuable? Sounds too simple.

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Marleen

11 months ago

Totally agree, reinvestment makes a huge difference!

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Regenia

11 months ago

Cash today is definitely worth more than cash tomorrow!

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Flo

11 months ago

I remember learning that a scope application user role is automatically created, so I'll select B.

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Vincent

11 months ago

This seems like a straightforward question about network security threats. I'll focus on identifying the external threats and how to counter them.

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Truman

11 months ago

I remember from my fraud examination course that shell companies are often used to create fake billing and collect illicit funds. I'm confident this is option B.

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