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CIMAPRO19-P02-1 Exam - Topic 1 Question 72 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 72
Topic #: 1
[All CIMAPRO19-P02-1 Questions]

An investment centre is appraising a potential project that is expected to yield a Return on Investment (ROI) of 12%.

Without the project the investment centre expects to earn an ROI of 14%. The cost of capital is 10%.

What would be the impact on the investment centre's performance measures if the project is accepted?

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Suggested Answer: D

by Eden at Jul 31, 2023, 01:32 AM

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Bulah
3 months ago
Surprised that the project has a lower ROI than the current one!
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Leigha
3 months ago
Wait, how can ROI increase if the project ROI is lower?
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Kasandra
4 months ago
I disagree, I think ROI will actually increase!
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Chauncey
4 months ago
Definitely think Residual Income will decrease.
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Meaghan
4 months ago
ROI is lower than expected without the project.
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Mertie
4 months ago
I recall that accepting a project with a lower ROI than the current one could actually decrease overall performance measures, but I can't remember if it affects ROI directly.
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Eun
4 months ago
I'm a bit unsure, but I feel like if the project has a lower ROI than the investment centre's current ROI, it could lead to a decrease in residual income.
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Cherry
5 months ago
I think I practiced a similar question where the ROI was compared to the cost of capital. If the project ROI is lower than the existing ROI, it might not be a good move.
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Walton
5 months ago
I remember that if the ROI from the project is lower than the current ROI, it could negatively impact the residual income.
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Ashleigh
5 months ago
Hmm, I'm a little confused on whether the Joint Commission only requires clinical staff involvement. I'll need to review that part carefully.
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Twana
5 months ago
The way I see it, the consistent time and location helps establish a predictable routine for the Daily Scrum, which makes it easier for the team to attend and participate. Option B seems like the most relevant answer to me.
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Daisy
5 months ago
I think AlertDialog is more about showing important messages rather than being just a small interface at the bottom.
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Lindsey
10 months ago
Oooh, this one's a brain-teaser! I'm leaning towards B, but I'm also wondering if the investment center has a secret stash of magic beans that could make the numbers work out differently.
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Hildred
8 months ago
D) Residual Income would increase and ROI would decrease.
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Effie
8 months ago
C) Residual Income would increase and ROI would increase.
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Dyan
8 months ago
B) Residual Income would decrease and ROI would decrease.
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Mable
8 months ago
A) Residual Income would decrease and ROI would increase.
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Lashaunda
8 months ago
D) Residual Income would increase and ROI would decrease.
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Irma
8 months ago
C) Residual Income would increase and ROI would increase.
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Hollis
9 months ago
B) Residual Income would decrease and ROI would decrease.
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Maryann
10 months ago
A) Residual Income would decrease and ROI would increase.
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Rebecka
10 months ago
This is a classic case of 'the numbers don't lie, but the accountants do.' I'm betting on B. Residual Income and ROI both go down. Unless, of course, the investment center is run by magicians.
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Twana
10 months ago
I'm going to go with D. If the project's ROI is lower, that means Residual Income will increase, but ROI will decrease. It's like getting a participation trophy, but with less actual performance.
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Hoa
10 months ago
That makes sense. It's like a trade-off between the two performance measures.
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Dorothy
10 months ago
I think you're right. Residual Income would increase, but ROI would decrease.
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Merilyn
10 months ago
Hmm, I think the answer is B. The project's ROI is lower than the current ROI, so that should decrease both Residual Income and ROI.
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Avery
11 months ago
This is a tricky one! The key is to understand how ROI and Residual Income are affected when the project's ROI is lower than the existing ROI.
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Louisa
9 months ago
That makes sense, since the project's ROI is lower than the existing ROI.
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Nicolette
9 months ago
B) Residual Income would decrease and ROI would decrease.
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Dusti
10 months ago
But wouldn't the overall performance measure be affected negatively?
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Basilia
10 months ago
A) Residual Income would decrease and ROI would increase.
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Margarita
11 months ago
Yes, you're right. So the answer would be A) Residual Income would decrease and ROI would increase.
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Von
11 months ago
But wouldn't the ROI increase in that case?
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Margarita
11 months ago
I think if the project is accepted, the Residual Income would decrease.
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