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CIMA Exam CIMAPRO19-P02-1 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

Contribute your Thoughts:

Ashanti
2 days 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
5 days 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
6 days 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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Darnell
18 days 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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Raelene
6 days ago
A) accounting rate of return
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Yaeko
29 days 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
30 days ago
B) risk adjusted discount rate makes the most sense to me. Gotta account for that risk, you know?
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Dorathy
15 hours ago
I think the internal rate of return is also a key factor in determining the discount rate.
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Bev
8 days ago
I agree, the risk adjusted discount rate is important to consider.
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Meaghan
1 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
1 months ago
I think the answer is C) internal rate of return.
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Jacki
1 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
20 days ago
Definitely, C) internal rate of return is the correct answer. It's a key metric in investment analysis.
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Gary
24 days 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
1 months ago
Yes, you're correct! The internal rate of return is the discount rate that makes the NPV zero.
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