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CIMAPRO19-P02-1 Exam - Topic 3 Question 40 Discussion

A project requires an initial investment of $50,000. It will generate positive cash flows for two years as follows.The cost of capital is 12% per year.What is the equivalent annual net present value of the project?Give your answer to the nearest $10.
A) $8190, $8191

CIMAPRO19-P02-1 Exam - Topic 3 Question 40 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 40
Topic #: 3
[All CIMAPRO19-P02-1 Questions]

A project requires an initial investment of $50,000. It will generate positive cash flows for two years as follows.

The cost of capital is 12% per year.

What is the equivalent annual net present value of the project?

Give your answer to the nearest $10.

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Suggested Answer: A

by Lizbeth at May 07, 2022, 05:54 AM

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Ma
10 months ago
I calculated it, and it seems off.
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Karol
10 months ago
Totally agree, this could be a solid project!
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Vallie
11 months ago
Wait, are we sure about those cash flow estimates?
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Venita
11 months ago
I think the cash flows look promising!
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Ellsworth
11 months ago
The initial investment is $50,000.
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Noah
11 months ago
Hmm, I'm not entirely sure about the differences between these job types. I'll need to think this through and eliminate the options that don't seem to fit the question.
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Audria
11 months ago
Okay, let's see. The company has to pay a specified proportion of its profit as profit-sharing, but staff turnover reduces that amount. I think the key is figuring out what the company recognizes as the liability and expense.
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Caren
11 months ago
This is a tricky one. I'm not entirely sure where to start, but I'll read through the question carefully and try to eliminate any options that don't seem plausible based on my understanding of report management.
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Leonor
11 months ago
I'm pretty confident it's 50 oF, but I just can't shake the feeling I might have mixed it up with some other topic.
upvoted 0 times
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