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

Which of the following investment appraisal methods provides an absolute monetary value on which to base decisions?
C) Internal rate of return
A) Accounting rate of return
B) Net present value
D) Profitability index

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
8 months ago
Really? I always thought ARR had its merits too.
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Alysa
8 months ago
NPV is the best for decision-making, no doubt!
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Brigette
8 months ago
Wait, are we sure about that? I thought IRR was also important.
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Felice
8 months ago
I agree, NPV is the way to go for absolute values!
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Renea
9 months ago
Definitely B, net present value gives a clear dollar amount.
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Lynna
9 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
9 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
9 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
9 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
9 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
9 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
9 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
10 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
10 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
10 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
1 year 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
1 year ago
I agree, Net present value is a solid method for investment appraisal.
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Kristine
1 year ago
I prefer the Net present value method. It gives a clear monetary value to base decisions on.
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Velda
1 year ago
Haha, yeah, it does sound like something conservative. But sometimes the traditional methods work best.
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Moira
1 year ago
D) Profitability index
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Cecily
1 year ago
C) Internal rate of return
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Ludivina
1 year ago
B) Net present value
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Tyra
1 year ago
A) Accounting rate of return
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Yuette
1 year 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
1 year 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
1 year ago
True, but I still think B is the most reliable method for making investment decisions.
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Giuseppe
1 year 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
1 year ago
I think B is the right choice. Net present value gives a clear monetary value.
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Twana
1 year 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
1 year ago
I'm torn between B and C. Internal rate of return also seems like a strong choice.
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Gertude
1 year ago
I see your point, but I still think B is the most reliable method.
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Serita
1 year ago
I think I'll go with D. Profitability index seems like a good option too.
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Nu
1 year ago
I agree, net present value is the way to go for sure.
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Nieves
1 year 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
1 year ago
Definitely, net present value is the most reliable method for making investment decisions.
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Ma
1 year ago
I agree, net present value is the way to go. It's all about that concrete number.
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Lorriane
1 year ago
I think so too, it's easier to make decisions when you have a specific number to consider.
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Laurena
1 year ago
I'm not sure, but I think it's either B) Net present value or D) Profitability index.
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Angella
1 year ago
I agree with Tamra. Net present value gives a clear monetary value for decision-making.
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Tamra
1 year ago
I think the answer is B) Net present value.
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Vicky
1 year ago
I think C) Internal rate of return also provides a good measure of profitability.
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Celestine
1 year ago
I agree with Marshall, NPV is the best method for decision-making.
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Marshall
1 year ago
B) Net present value provides an absolute monetary value.
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