CIMA Exam CIMAPRO19-P03-1 Topic 3 Question 31 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 31
Topic #: 3

A project has an NPV of 1,200,000. The present value of material costs which are included in the NPV calculation are 8,000,000.

What is the sensitivity of the project to changes in material costs?

Give your answer to the nearest whole percentage.

A15%

Show Suggested Answer

Suggested Answer: A, B, D

by Theodora at May 09, 2022, 07:17 PM

Limited Time Offer

25%

Off

Contribute your Thoughts:

Submit Cancel

10 days ago

I agree with William, the project's NPV is heavily dependent on material costs, so the sensitivity is likely higher than 15%.

upvoted 0 times

...

12 days ago

I disagree, I believe the sensitivity is higher than 15% because the NPV is significantly affected by material costs.

upvoted 0 times

...

14 days ago

I think the sensitivity of the project to changes in material costs is 15%.

upvoted 0 times

...