CIMA Exam CIMAPRO19-P02-1 Topic 4 Question 92 Discussion

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

Question #: 92
Topic #: 4

[All CIMAPRO19-P02-1 Questions]

The following calculation of the net present value (NPV) of a project has been produced.

By how much can the forecast revenue decrease before the project is not viable?

A7.2%

B35.6%

C$20,000 per year

D$21,380 in total

Show Suggested Answer

Suggested Answer: A

by Lorean at Jul 08, 2024, 07:32 AM

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Skye

2 days ago

But if the revenue decreases by $20,000 per year, the project may not be viable.

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Ozell

4 days ago

I disagree, I believe it can decrease by 7.2%.

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Sommer

5 days ago

The correct answer is B) 35.6%. This represents the maximum decrease in forecast revenue before the project becomes not viable, based on the given NPV calculation.

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Skye

7 days ago

I think the forecast revenue can decrease by $20,000 per year.

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