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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
8 months ago
11% seems too optimistic for this project.
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Kristel
8 months ago
Wait, how can it be that high? Sounds off.
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Curt
8 months ago
Definitely 10%, I did the math!
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Kenia
8 months ago
I think it's closer to 9%.
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Leatha
9 months ago
The IRR is around 10%.
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Evelynn
9 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
9 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
9 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
9 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
9 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
9 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
9 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
9 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
10 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
10 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
10 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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