CIMAPRO19-P02-1 Exam - Topic 6 Question 124 Discussion

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

Question #: 124
Topic #: 6

Company TTM has the opportunity to invest $60,000 in a project. The project is anticipated to produce annual returns of $12,500 each year for 8 years. The cost of capital is 12%.

What is the net present value of the project? Give your answer to the nearest whole number.

A$2100

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Suggested Answer: A

by Cecil at Apr 08, 2026, 05:22 AM

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Leana

18 days ago

I think it's around $2100, right?

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Gail

23 days ago

NPV calculation is key here!

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Ula

1 month ago

I’m a bit confused about the cost of capital. Does that mean we just use 12% for the discount rate? I feel like I’ve seen this in practice questions before.

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Corazon

1 month ago

If I recall, we should subtract the initial investment from the total present value of the cash flows. I hope I remember the discounting part right!

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Tanesha

2 months ago

I remember doing a similar question where we had to discount cash flows. I think we use the formula for NPV, but I might mix up the steps.

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Ryan

2 months ago

I think we need to calculate the present value of the cash flows first, but I'm not entirely sure how to apply the formula correctly.

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