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CIMAPRO19-P02-1 Exam - Topic 4 Question 112 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 112
Topic #: 4
[All CIMAPRO19-P02-1 Questions]

The discount rate at which the net present value (NPV) is zero is known as the

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Suggested Answer: C

by Marica at Jun 14, 2025, 06:13 PM

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Dahlia
5 months ago
I can see why people might confuse it with B, but it's C for sure.
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Nikita
6 months ago
Wait, is it really C? I thought it was something else.
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Lonny
6 months ago
Totally agree, C is the right answer!
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Samira
6 months ago
Nope, definitely not A or D!
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Jaime
6 months ago
It's called the internal rate of return (C).
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Eliseo
6 months ago
I thought the breakeven point was related to costs, not NPV. So I’m leaning towards C as well.
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Sommer
7 months ago
I'm torn between C and B. I feel like I've seen both terms used in different contexts.
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Yong
7 months ago
I remember practicing a similar question, and I think the internal rate of return is definitely the term we're looking for here.
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Cassi
7 months ago
I think the answer might be C, internal rate of return, but I'm not completely sure.
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Sylvia
7 months ago
I'm a bit confused on the difference between the internal rate of return and the risk-adjusted discount rate. I'll have to review my notes on capital budgeting to make sure I understand this properly before answering.
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Alonso
8 months ago
Okay, let me think this through step-by-step. The NPV formula includes the discount rate, and when NPV is zero, that means the discount rate is the one that makes the NPV equal to zero. I believe that's the definition of the internal rate of return, so I'll select C.
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Hannah
8 months ago
Hmm, I'm a bit unsure on this one. I know the internal rate of return is related to NPV, but I can't quite remember the exact definition. I'll have to think this through carefully.
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Alyce
8 months ago
This one looks straightforward - the discount rate where NPV is zero is the internal rate of return, so I'll go with option C.
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Ashanti
10 months ago
B) risk adjusted discount rate. Gotta love those finance terms, am I right? 'Risk adjusted'? Sounds like something straight out of a textbook. I bet the person who wrote this question is a real stickler for that kind of thing.
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Eladia
11 months ago
C) internal rate of return, all the way! It's the discount rate that makes the NPV zero, which is exactly what the question is asking for. Easy peasy!
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Lashanda
11 months ago
I'm going with C) internal rate of return. It's the only one that really makes sense in the context of NPV. Although, to be honest, I'm a little worried about the question - it feels like a trick question or something.
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Isabelle
9 months ago
I agree, the internal rate of return is crucial for determining the discount rate at which the project breaks even.
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Laurel
10 months ago
I think C) internal rate of return is the correct answer too. It's all about finding that zero NPV point.
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Darnell
11 months ago
D) breakeven point? Really? I mean, that's not even close to the right answer. What kind of joker would pick that?
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Roxane
10 months ago
B) risk adjusted discount rate
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Danica
10 months ago
C) internal rate of return
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Raelene
11 months ago
A) accounting rate of return
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Yaeko
11 months ago
I'm not sure, but I think it's D) breakeven point because that's when costs equal revenue.
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Leah
11 months ago
B) risk adjusted discount rate makes the most sense to me. Gotta account for that risk, you know?
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Lyla
10 months ago
Accounting rate of return is also important to consider in financial analysis.
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Melda
10 months ago
The breakeven point is crucial for determining profitability.
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Dorathy
10 months ago
I think the internal rate of return is also a key factor in determining the discount rate.
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Bev
11 months ago
I agree, the risk adjusted discount rate is important to consider.
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Meaghan
12 months ago
I agree with Lyda. The internal rate of return is the discount rate at which NPV is zero.
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Lyda
12 months ago
I think the answer is C) internal rate of return.
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Jacki
12 months ago
C) internal rate of return seems like the obvious choice here. That's the discount rate that makes the NPV zero, right?
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Lawanda
11 months ago
Definitely, C) internal rate of return is the correct answer. It's a key metric in investment analysis.
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Gary
11 months ago
I think it's C) internal rate of return too. It's the rate at which the project breaks even.
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Vicky
12 months ago
Yes, you're correct! The internal rate of return is the discount rate that makes the NPV zero.
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