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CIMAPRO19-P02-1 Exam - Topic 5 Question 96 Discussion

$30.328 million is to be invested in a project that will yield annual net cash inflows of $8 million for 5 years.What is the project's internal rate of return (IRR)?Give your answer to the nearest whole percentage.
A) 9 %, 10 %, 11 %

CIMAPRO19-P02-1 Exam - Topic 5 Question 96 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 96
Topic #: 5
[All CIMAPRO19-P02-1 Questions]

$30.328 million is to be invested in a project that will yield annual net cash inflows of $8 million for 5 years.

What is the project's internal rate of return (IRR)?

Give your answer to the nearest whole percentage.

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Suggested Answer: A, C, D

by Dick at Sep 10, 2024, 11:02 AM

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Clorinda
9 months ago
11% seems too optimistic for this project.
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Kristel
10 months ago
Wait, how can it be that high? Sounds off.
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Curt
10 months ago
Definitely 10%, I did the math!
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Kenia
10 months ago
I think it's closer to 9%.
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Leatha
10 months ago
The IRR is around 10%.
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Evelynn
10 months ago
I’m a bit lost on whether to use a financial calculator or Excel for this. I’ve seen both methods in practice questions.
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Torie
11 months ago
If I recall correctly, the IRR is the rate that makes the net present value zero. I hope I can remember how to calculate that during the exam.
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Melissia
11 months ago
I remember practicing a similar question where we had to find the IRR using the cash flow formula. I think it involved some trial and error with different rates.
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Osvaldo
11 months ago
I think we need to use the cash inflows and the initial investment to calculate the IRR, but I'm not entirely sure how to set it up.
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Melvin
11 months ago
I'm feeling pretty confident about this one. IRR calculations are straightforward, I just need to be careful with the math. I'll work through it systematically.
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Brittni
11 months ago
No problem, I've got this. IRR is all about finding the discount rate that makes the NPV equal zero. I'll set that up and solve it step-by-step.
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Jolanda
11 months ago
Wait, how do I calculate the IRR again? I'm a little fuzzy on the steps. Maybe I should review my notes before trying this one.
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Julian
11 months ago
Hmm, this looks like a classic IRR calculation. I'll need to use the NPV formula and solve for the discount rate that makes the NPV equal to zero.
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Dalene
11 months ago
Okay, I think I know how to do this. I just need to plug the numbers into the IRR formula and solve for the rate. Shouldn't be too tricky.
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Charlie
11 months ago
This is a tricky one, but I think I can figure it out. I'll need to pay close attention to the details and make sure I select the configurations that meet all the requirements.
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Cheryl
11 months ago
Hmm, I'm not too sure about this one. I'll have to think through the typical dosing for bisphosphonate medications used in osteoporosis.
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Luisa
1 year ago
Wait, I thought we were supposed to invest in a project that yields a 30% return? Guess I misread the question. Ah well, 10% it is!
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Julene
1 year ago
Alright, time to put my finance chops to the test. I'm going with 10% - it's the Goldilocks of the options, not too hot, not too cold.
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Effie
1 year ago
Haha, this is easy! I'm going to pick 9% and watch the rest of you scramble to catch up.
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Keshia
1 year ago
I'm not sure, but I'll go with 10% too.
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Maynard
1 year ago
I'm sticking with 9% like the first user.
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Lashandra
1 year ago
I think I'll go with 11% as my answer.
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Marshall
1 year ago
I'm going with 10% for the project's internal rate of return.
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Helaine
1 year ago
10% seems like a safe bet, but I'm feeling a little adventurous. Maybe I'll go with 11% and see if I can beat the system!
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Clemencia
1 year ago
Hmm, I'm going to go with 10% - it just feels right, you know? Gotta trust my gut on this one.
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Tamar
1 year ago
User 3: I agree, 10% sounds like a good estimate.
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Linn
1 year ago
User 2: Yeah, that seems like a reasonable choice.
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Nobuko
1 year ago
User 1: I think I'll go with 10% as well.
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Deeanna
1 year ago
I'm not sure, but I think it could also be 11% because the project seems quite profitable
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Leigha
1 year ago
I agree with Lashanda, 10% makes sense based on the cash inflows and initial investment
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Lashanda
1 year ago
I think the IRR is 10%
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