CIMA Exam CIMAPRO19-P02-1 Topic 2 Question 116 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 116
Topic #: 2

There is a 60% probability of a project yielding a positive net present value (NPV) of $280,000 and a 30% probability of it yielding a positive NPV of $140,000.

The only other possible outcome is that the project will yield a negative NPV of $160,000.

What is the expected value of the project's NPV?

A$194,000

B$210,000

C$280,000

D$260,000

Show Suggested Answer

Suggested Answer: A

by Justine at Aug 12, 2025, 05:36 PM

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