CIMAPRO19-P02-1 Exam - Topic 7 Question 53 Discussion

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

Question #: 53
Topic #: 7

You have just assessed an investment proposal, involving an immediate cash outflow followed by a series of cash inflows over the next 7years, by deducing the NPV and the IRR. You have now discovered that you have

underestimated the discount rate.

Correcting the underestimation will have the following effect, relative to your original deductions:

ANPV will reduce, IRR will not change

BNPV and IRR will not change

CNPV will increase, IRR will reduce

DNPV and IRR will both increase

ENot enough information given for an answer

Show Suggested Answer

Suggested Answer: A

by Taryn at Jun 18, 2022, 09:40 AM

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Ronnie

4 months ago

Classic case of underestimating costs, NPV drops for sure!

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Mila

4 months ago

Not sure about this, seems like we need more info.

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Lashawna

4 months ago

Wait, how can NPV increase if the discount rate goes up?

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Ona

4 months ago

I agree, the IRR won't change though.

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Polly

4 months ago

NPV will definitely reduce with a higher discount rate.

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Cory

5 months ago

I’m confused because I thought both NPV and IRR were linked, but now I’m not sure if they both decrease or if one stays the same.

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Ronald

5 months ago

I think I practiced a similar question where a higher discount rate led to a lower NPV, so I might lean towards option A.

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Casie

5 months ago

I remember that increasing the discount rate typically lowers the NPV, but I'm not sure how it affects the IRR.

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Hershel

5 months ago

I feel like the IRR is more about the rate of return, so it might not change with just a discount rate adjustment?

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Wynell

5 months ago

Okay, let's see here. The attacker has the user's credentials and is trying to connect to the network, so blocking the source IP might not be enough. I'm leaning towards option D - identifying lateral movement. We need to understand how far the attacker has penetrated the network.

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Roxane

5 months ago

I'm pretty confident I know this one. The Capability Blueprint has 4 tiers, and Tier 1 is identified as Strategic Conformance.

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Jovita

5 months ago

I'm a little unsure about this one. The options don't seem to directly reference Web Intelligence, which is making it hard for me to determine the correct answer. I'll have to make an educated guess and hope for the best.

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