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CIMAPRO19-P02-1 Exam - Topic 6 Question 131 Discussion

When making an investment decision, which THREE of the following are reasons why receiving $1 today is preferable to receiving $1 in the future?
A) Uncertainty and B) Inflation and D) Re-investment opportunities
C) Taxation
E) Depreciation

CIMAPRO19-P02-1 Exam - Topic 6 Question 131 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 131
Topic #: 6
[All CIMAPRO19-P02-1 Questions]

When making an investment decision, which THREE of the following are reasons why receiving $1 today is preferable to receiving $1 in the future?

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Suggested Answer: A, B, D

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Corinne
4 days ago
I feel like we had a practice question similar to this, and I think re-investment opportunities are crucial. D seems like a strong choice.
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Tawanna
9 days ago
I’m not entirely sure, but I think inflation is a big factor too. It erodes the purchasing power of money over time, right? So B might be correct.
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Eveline
14 days ago
I remember discussing how uncertainty can really affect the value of future money, so I think A is definitely one of the reasons.
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