New Year Sale 2026! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions

CIMAPRO19-P02-1 Exam - Topic 7 Question 13 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 13
Topic #: 7
[All CIMAPRO19-P02-1 Questions]

The net present value of the cost of operating a machine for the next 4 years is 6,340. The discount rate used is 10%.

What is the equivalent annual cost and the present value of the cost in perpetuity of operating this machine?

Use discount factors to 3 decimal places.

Show Suggested Answer Hide Answer
Suggested Answer: C

Contribute your Thoughts:

0/2000 characters
Marsha
4 months ago
Is it really that straightforward? I’m not so sure.
upvoted 0 times
...
Rebbeca
4 months ago
Totally agree, B makes the most sense here!
upvoted 0 times
...
Herman
4 months ago
Wait, how can the present value be higher than the NPV? Sounds off.
upvoted 0 times
...
Luann
4 months ago
I think B is the correct answer!
upvoted 0 times
...
Felton
5 months ago
Equivalent annual cost should be lower than the total NPV, right?
upvoted 0 times
...
Anthony
5 months ago
The options mention a few different Avaya products, so I'll need to review my notes on their capabilities to determine the right one for outbound campaign management.
upvoted 0 times
...
Tom
5 months ago
Alright, I've got a few ideas. I think the key is understanding whether the database instance needs to be up or not.
upvoted 0 times
...
Trina
5 months ago
This one seems pretty straightforward. I'm pretty confident the right answer is B, the right to vote on important company matters.
upvoted 0 times
...

Save Cancel