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CIMAPRO19-P02-1 Exam - Topic 8 Question 58 Discussion

A company is deciding whether to invest in project A or project B. A decision tree has been prepared to illustrate the investment decision and its associated possible net present values (NPVs).Which of the following statements is correct?
D) decision maker who is risk seeking would select project A.
A) A risk neutral decision maker would select project B because it shows less variation of outcomes.
B) Project A is more likely to reduce shareholder wealth than to increase it.
C) Project A will generate a positive net present value of $1.3m.

CIMAPRO19-P02-1 Exam - Topic 8 Question 58 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 58
Topic #: 8
[All CIMAPRO19-P02-1 Questions]

A company is deciding whether to invest in project A or project B. A decision tree has been prepared to illustrate the investment decision and its associated possible net present values (NPVs).

Which of the following statements is correct?

Show Suggested Answer Hide Answer
Suggested Answer: D

by Quentin at Sep 22, 2022, 02:31 AM

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Merlyn
8 months ago
A risk-seeking decision maker would totally go for project A!
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Marcelle
9 months ago
Project A's NPV of $1.3m is a solid figure, though.
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Aja
9 months ago
Surprised that project A is even an option with those risks.
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Val
9 months ago
I disagree, project A has potential for higher returns!
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Thurman
9 months ago
Project B has less variation, so it makes sense for risk-neutral folks.
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Gail
9 months ago
I vaguely remember that risk-seeking decision makers might prefer projects with higher potential returns, which could point to option D being correct, but I need to double-check my notes.
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Dierdre
9 months ago
I think project A generating a positive NPV of $1.3m sounds familiar, but I can't recall if that was from our case studies or just a practice question.
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Bobbye
9 months ago
I feel like project A has a higher chance of reducing shareholder wealth based on the NPV analysis we practiced, so option B could be the right choice.
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Edmond
10 months ago
I remember discussing how risk-neutral decision makers focus on expected values, so I think option A might be correct, but I'm not entirely sure.
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Janine
10 months ago
Okay, let's see. I remember learning about these different attacks in class. I think the key here is to focus on the requirements for each one.
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Lewis
10 months ago
Based on my understanding, the answer is B - Availability Zones. This feature replicates data across multiple isolated datacenters within the same Azure region, providing redundancy and high availability. The other options are more about replication across regions or consistency levels, not intra-region redundancy.
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Sommer
10 months ago
I'm a bit confused on this one. Is it possible the answer could be in the Post-build Actions section? I'll have to double-check the Jenkins documentation to be sure.
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Myra
10 months ago
Ah, I think I've got this one. The issue is likely related to the "Open another program" action, which can sometimes cause problems with Outlook rules. I'll focus on that as the most likely cause.
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