CIMA Exam CIMAPRO19-P02-1 Topic 8 Question 91 Discussion

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

Question #: 91
Topic #: 8

A company is investing $200,000 in a project which will generate a cash flow of $60,000 each year for five years starting immediately. The company's cost of capital is 7%.

The net present value of the investment to the nearest $100 is $

A63200

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Suggested Answer: A, C, D

by Leatha at Jun 29, 2024, 07:19 AM

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Leslee

5 days ago

I'm not sure about the answer. Can someone explain how the net present value is calculated in this case?

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Lavonna

8 days ago

I agree with Bok. The net present value calculation is based on the discounted cash flows using the cost of capital.

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Bok

14 days ago

I think the answer is A) 63200.

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