CIMAPRO19-P02-1 Exam - Topic 7 Question 130 Discussion

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

Question #: 130
Topic #: 7

[All CIMAPRO19-P02-1 Questions]

The following data are available for four projects with unequal lives.

A 10% discount rate is appropriate for all four projects.

Which project has the highest equivalent annual benefit?

AProject A

BProject B

CProject C

DProject D

Show Suggested Answer

Suggested Answer: B

by Tora at Jul 15, 2026, 08:50 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Jacinta

3 days ago

I’m leaning towards Project C. The numbers seem strong.

upvoted 0 times

...

Sophia

9 days ago

I think Project B looks promising.

upvoted 0 times

...

Agustin

14 days ago

Not sure about these numbers, feels off.

upvoted 0 times

...

Tatum

19 days ago

Totally agree, Project B looks solid!

upvoted 0 times

...

Jennifer

24 days ago

Surprised that Project A isn't in the running!

upvoted 0 times

...

Edward

29 days ago

I think Project C might actually be better.

upvoted 0 times

...

Karrie

1 month ago

Project B has the highest equivalent annual benefit.

upvoted 0 times

...

Lauryn

1 month ago

I recall that we should compare the EABs directly, but I’m a bit confused about how the discount rate affects each project differently.

upvoted 0 times

...

Dacia

1 month ago

I feel like Project C might be the one, but I need to double-check the cash flows and discounting calculations.

upvoted 0 times

...

Taryn

2 months ago

I think Project B had the highest NPV in a similar question we did, but I’m not confident about the annualization part.

upvoted 0 times

...

Marcos

2 months ago

I remember we practiced calculating equivalent annual benefits, but I’m not sure how to apply it with projects of unequal lives.

upvoted 0 times

...