CIMA Exam CIMAPRO19-P02-1 Topic 9 Question 114 Discussion

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

Question #: 114
Topic #: 9

[All CIMAPRO19-P02-1 Questions]

In an inflationary environment which is the correct way of calculating net present value (NPV)?

AUsing nominal cash flows and a nominal discount rate.

BForecasting the cash flows including the effect of inflation and then using a real discount rate.

CUsing real cash flows and a nominal discount rate.

DForecasting the cash flows excluding the effect of inflation and then using a nominal discount rate.

Show Suggested Answer

Suggested Answer: A

by Vi at Jul 14, 2025, 07:18 PM

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