CIMA Exam CIMAPRO19-P02-1 Topic 7 Question 94 Discussion

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

Question #: 94
Topic #: 7

The following forecast data relate to the first three years of a five year project.

The project will require an initial investment of $30,000 in non-current assets.

All revenue will be received in the year it is earned and all operating costs will be paid in the year they are incurred. Tax will be paid in the following year.

Tax depreciation will be 25% per annum of the reducing balance.

The taxation rate will be 30% of taxable profits.

What is the forecast after tax cash flow for year 3 (to the nearest $10)?

A$45,890

B$39,750

C$46,000

D$38,500

Show Suggested Answer

Suggested Answer: C

by Lovetta at Aug 08, 2024, 03:22 AM

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Leanora

2 days ago

I think the correct answer is C) $46,000. The forecast data and the given information seem to align with this option.

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Candida

13 days ago

I believe the correct answer is $46,000 because of the tax depreciation and taxation rate.

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Tyisha

16 days ago

I disagree, I calculated it to be $39,750.

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Candida

17 days ago

I think the forecast after tax cash flow for year 3 is $45,890.

upvoted 0 times

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