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CIMAPRO19-P02-1 Exam - Topic 4 Question 65 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 65
Topic #: 4
[All CIMAPRO19-P02-1 Questions]

Which of the following statements about modified internal rate of return (MIRR) and internal rate of return (IRR) is correct?

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Suggested Answer: A

by Ozell at Feb 08, 2023, 07:04 PM

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Cecily
4 months ago
C is false, MIRR and IRR can rank projects differently.
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Fletcher
4 months ago
Wait, D can't be right all the time, can it?
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Laurel
4 months ago
B seems off, IRR can also favor long payback projects.
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Theresia
4 months ago
Totally agree with A, IRR can be misleading!
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Erick
4 months ago
A is true, MIRR does use a better reinvestment rate.
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Kaitlyn
5 months ago
I vaguely recall that MIRR and IRR can sometimes rank projects differently, especially if cash flows are unconventional. So, I’m leaning towards option A as well.
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Amie
5 months ago
I think option A is correct because MIRR does use a more realistic reinvestment rate, but I’m not 100% certain about the other options.
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Kiley
5 months ago
I’m not entirely sure, but I think MIRR might favor projects with longer payback periods? I feel like I saw a question like that in our practice exams.
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Chantay
5 months ago
I remember that MIRR is supposed to give a better picture of the project's profitability because it assumes reinvestment at the cost of capital, unlike IRR.
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Ena
5 months ago
This seems like a pretty straightforward question about testing controls over sales transactions. I think the key is to focus on procedures that would help verify the completeness of recorded sales.
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Cecilia
5 months ago
Hmm, I'm a bit unsure about this one. I know we need to configure something related to Webex Teams, but I'm not sure about the other element. Maybe the gRPC credentials?
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Tish
5 months ago
Wait, I'm a bit confused. Is this asking about authentication issues, privacy vulnerabilities, privacy threat vectors, or reportable privacy violations? I'll have to re-read the question and options carefully to make sure I understand what they're looking for.
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Clorinda
5 months ago
I found similar practice questions mentioning User Agent Accessibility Guidelines, but they seemed more about how browsers handle accessibility rather than web content itself.
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Hildegarde
10 months ago
D) A project's MIRR will always be higher than its IRR. Well, that's convenient! I guess the finance gods decided to make MIRR the 'above-average' sibling of the IRR family.
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Billi
9 months ago
D) A project's MIRR will always be higher than its IRR.
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Brendan
9 months ago
C) MIRR and IRR will always rank competing projects in the same order.
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Theodora
9 months ago
A) MIRR uses a more realistic reinvestment assumption than IRR.
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Annamaria
10 months ago
B) MIRR favours projects with long payback periods whereas IRR does not. Interesting. I wonder if that means MIRR is better for evaluating long-term investments. Or maybe it just likes to torture project managers with endless calculations.
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Rossana
10 months ago
Hmm, that's interesting. Can you explain why you think that?
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Madonna
10 months ago
C) MIRR and IRR will always rank competing projects in the same order. Hmm, I'm not so sure about that. Isn't the whole point of MIRR to provide a different perspective on project ranking compared to IRR?
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Ben
10 months ago
C) MIRR and IRR will always rank competing projects in the same order.
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Ben
10 months ago
A) MIRR uses a more realistic reinvestment assumption than IRR.
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Yolando
10 months ago
I disagree, I believe the correct statement is C) MIRR and IRR will always rank competing projects in the same order.
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Edna
10 months ago
D) A project's MIRR will always be higher than its IRR. Really? I thought MIRR was supposed to be more conservative than IRR. Guess I need to review the differences between these two metrics.
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Rossana
10 months ago
I think the correct statement is A) MIRR uses a more realistic reinvestment assumption than IRR.
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Hildegarde
11 months ago
A) MIRR uses a more realistic reinvestment assumption than IRR. This makes sense to me, as MIRR considers the actual rates at which cash flows can be reinvested, rather than just assuming a constant rate like IRR.
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Gilbert
10 months ago
Definitely, it's a better measure than IRR in that sense.
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Denny
10 months ago
So, MIRR is more accurate in evaluating projects.
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Huey
10 months ago
That's true, MIRR considers actual reinvestment rates.
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Tresa
10 months ago
I think A) MIRR uses a more realistic reinvestment assumption than IRR.
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