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CIMAPRO19-P02-1 Exam - Topic 9 Question 79 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 79
Topic #: 9
[All CIMAPRO19-P02-1 Questions]

Which of the following investment appraisal methods provides an absolute monetary value on which to base decisions?

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Suggested Answer: C

by Eladia at Dec 27, 2023, 12:31 AM

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Deane
3 months ago
Really? I always thought ARR had its merits too.
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Alysa
3 months ago
NPV is the best for decision-making, no doubt!
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Brigette
4 months ago
Wait, are we sure about that? I thought IRR was also important.
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Felice
4 months ago
I agree, NPV is the way to go for absolute values!
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Renea
4 months ago
Definitely B, net present value gives a clear dollar amount.
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Lynna
4 months ago
I’m confused between NPV and IRR; I thought both could give some kind of monetary value, but maybe only NPV is absolute?
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Tarra
4 months ago
I feel like the Accounting Rate of Return might be relevant here, but it doesn't seem to provide a clear monetary value like NPV does.
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Kimberely
4 months ago
I remember practicing a question like this, and I think the Profitability Index is more about ratios than absolute values.
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Karol
5 months ago
I think the method that gives an absolute monetary value is the Net Present Value, but I'm not entirely sure.
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Stanford
5 months ago
Okay, I've got this. Net present value is the investment appraisal method that gives you a clear, numerical value to base your decision on. The other methods are more relative comparisons. B is the answer.
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Luther
5 months ago
Hmm, I'm a bit unsure on this one. I know net present value is important, but I can't remember if it's the only one that provides an absolute monetary value. Let me think this through...
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Leonida
5 months ago
I'm pretty sure the answer is B. Net present value gives you an absolute monetary value to base investment decisions on, unlike the other methods.
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Wilbert
5 months ago
I think B is the right choice here. Net present value tells you the actual dollar amount you can expect from the investment, which makes it the best method for an absolute monetary value.
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Weldon
5 months ago
Hmm, this seems like a tricky one. I'll have to think carefully about the different object types that can be imported through the Merchant Tools module.
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Lavonna
5 months ago
Hmm, I'm not sure about that. Wouldn't it be better to increase the interest rate and the price to maximize the seller's after-tax profit?
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Alease
10 months ago
Wait, there's an 'Accounting rate of return'? Sounds like something my accountant grandma would approve of. Where's the fun in that?
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Reid
8 months ago
I agree, Net present value is a solid method for investment appraisal.
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Kristine
8 months ago
I prefer the Net present value method. It gives a clear monetary value to base decisions on.
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Velda
8 months ago
Haha, yeah, it does sound like something conservative. But sometimes the traditional methods work best.
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Moira
8 months ago
D) Profitability index
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Cecily
9 months ago
C) Internal rate of return
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Ludivina
9 months ago
B) Net present value
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Tyra
9 months ago
A) Accounting rate of return
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Yuette
10 months ago
Easy peasy, it's gotta be B. Net present value - the only option that gives me a real, tangible number to base my decision on. Time to invest like a boss!
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Mila
10 months ago
Hmm, this is a tough one. I'm leaning towards B, but I'm also curious about that 'profitability index' option. Sounds fancy!
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Merlyn
8 months ago
True, but I still think B is the most reliable method for making investment decisions.
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Giuseppe
9 months ago
I agree, but profitability index is also worth considering. It takes into account both the size and timing of cash flows.
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Kattie
9 months ago
I think B is the right choice. Net present value gives a clear monetary value.
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Twana
10 months ago
I'm going with B. Net present value - it's the only one that provides a direct monetary value, perfect for making investment decisions.
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Keneth
8 months ago
I'm torn between B and C. Internal rate of return also seems like a strong choice.
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Gertude
9 months ago
I see your point, but I still think B is the most reliable method.
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Serita
9 months ago
I think I'll go with D. Profitability index seems like a good option too.
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Nu
10 months ago
I agree, net present value is the way to go for sure.
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Nieves
10 months ago
Net present value seems like the clear winner here. It gives me a concrete number to work with, unlike those other vague methods.
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Ma
10 months ago
Definitely, net present value is the most reliable method for making investment decisions.
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Ma
10 months ago
I agree, net present value is the way to go. It's all about that concrete number.
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Lorriane
10 months ago
I think so too, it's easier to make decisions when you have a specific number to consider.
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Laurena
10 months ago
I'm not sure, but I think it's either B) Net present value or D) Profitability index.
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Angella
10 months ago
I agree with Tamra. Net present value gives a clear monetary value for decision-making.
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Tamra
11 months ago
I think the answer is B) Net present value.
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Vicky
11 months ago
I think C) Internal rate of return also provides a good measure of profitability.
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Celestine
11 months ago
I agree with Marshall, NPV is the best method for decision-making.
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Marshall
11 months ago
B) Net present value provides an absolute monetary value.
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