Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIMA Exam CIMAPRO19-P01-1 Topic 3 Question 74 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam
Question #: 74
Topic #: 3
[All CIMAPRO19-P01-1 Questions]

A decision tree is being evaluated back to a decision point.

There are two alternatives at this point:

1. To abandon the project and generate a return of $435,000;

2. To continue with the project and generate the following possible returns:

What value should be included at the decision point?

Show Suggested Answer Hide Answer
Suggested Answer: A, D, E

References:


by Candida at Aug 28, 2023, 07:38 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P01-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Casie
6 days ago
I'm picking option A. $435,000. It may not be the highest, but at least I know what I'm getting. No need to risk it all on the unknown, am I right? Slow and steady wins the race, as they say.
upvoted 0 times
Tonette
2 days ago
User 1: I agree with you, option A seems like the safer choice.
upvoted 0 times
...
...
Tiffiny
12 days ago
Ah, the old decision tree dilemma. I'm feeling lucky, so I'm going with B. $451,000. After all, what's a few thousand dollars between friends? Let's roll the dice and see what happens!
upvoted 0 times
...
Dusti
17 days ago
I'm going with C. $443,000. It's the average of the two possible returns from continuing the project, and that seems like a safe bet to me. No need to get too fancy here.
upvoted 0 times
...
Carmen
19 days ago
Hmm, this one's tricky. I'm leaning towards D. $720,000, since that's the highest possible return if we continue the project. Who doesn't love a big payout, right?
upvoted 0 times
...
Michael
24 days ago
That's true, but the potential return of $720,000 is tempting. We should take the risk.
upvoted 0 times
...
Annmarie
29 days ago
I think the answer is B. $451,000. The expected value of continuing the project is calculated as (0.4 * $700,000) + (0.6 * $250,000) = $451,000. This is higher than the $435,000 return from abandoning the project.
upvoted 0 times
Elouise
3 days ago
Yes, it seems like the better decision financially.
upvoted 0 times
...
Gaston
4 days ago
I think we should definitely continue with the project then.
upvoted 0 times
...
Rachael
7 days ago
That makes sense, the expected value calculation supports that.
upvoted 0 times
...
Geraldine
9 days ago
I agree with you, the answer is B. $451,000.
upvoted 0 times
...
...
Vicky
29 days ago
But what if the returns are not as high as expected? Maybe it's safer to abandon the project.
upvoted 0 times
...
Michael
1 months ago
I think we should continue with the project for a chance to earn more.
upvoted 0 times
...

Save Cancel