IASSC ICBB Exam - Topic 9 Question 60 Discussion

Actual exam question for IASSC's ICBB exam

Question #: 60
Topic #: 9

[All ICBB Questions]

What dollar amount of savings would a project show if it reduced your outstanding Accounts Receivable by $0.9 million dollars to $3.5 million total and your organization's marginal cost of capital was 5.7%?

A$49,250

B$51,300

C$117,500

D$202,424

Show Suggested Answer

Suggested Answer: B

by Leota at Feb 09, 2024, 07:24 PM

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Beula

3 months ago

Totally agree with you, Barabara!

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Carli

4 months ago

Just did the math, looks like $51,300 is right!

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Veronika

4 months ago

Wait, are we sure about that? Seems a bit high to me.

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Carlee

4 months ago

I think it’s definitely option D, that makes the most sense!

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Barabara

4 months ago

The savings calculation is based on the reduction in AR and the cost of capital.

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Brandon

5 months ago

I think the answer could be $49,250, but I’m not completely confident. I remember we discussed how to factor in the time value of money in class, which might be relevant here.

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Carmen

5 months ago

I’m a bit confused about how to approach this. Do we just multiply the reduction by the marginal cost of capital? I feel like I might have practiced something like this before.

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Willodean

5 months ago

I remember a similar question where we had to find the savings based on a percentage of the reduced amount. I think it might be around $51,300, but I need to double-check my calculations.

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Corazon

5 months ago

I think we need to calculate the savings from the reduction in Accounts Receivable, but I'm not entirely sure how to apply the marginal cost of capital to that.

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Rosalyn

5 months ago

This seems pretty straightforward. I'll just need to plug the numbers into the present value formula and I should be able to get the right answer.

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Arlette

5 months ago

Okay, I think I've got this. I just need to discount the $0.9 million reduction by the 5.7% cost of capital to find the present value savings. Should be a pretty simple calculation.

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Cordie

5 months ago

This looks like a straightforward time value of money calculation. I'll need to find the present value of the $0.9 million reduction in Accounts Receivable using the given 5.7% cost of capital.

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Elenore

5 months ago

Hmm, not sure how to approach this one. I'll need to think through the steps carefully to make sure I don't miss anything.

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Argelia

5 months ago

Okay, let's see. In machine learning, we often talk about neural networks, which are inspired by the structure of the brain. I think the axons might be called nodes, but I'm not 100% certain.

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Carmen

5 months ago

Okay, I think I've got this. The key is to create the appropriate links between the data extensions to support the welcome journey. Option B seems like the way to go.

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Cristal

5 months ago

I've created Record Producers before, and I think option A is the way to go. It's a simple and straightforward process that I'm familiar with.

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Ocie

5 months ago

I think I've got it. Enabling access to the primary datacenter and blocking access to the Disaster Recovery datacenter are the two key steps to move the users back to the normal operations.

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Winifred

5 months ago

Hmm, the log file shows some concerning information about the LTM device. I'm not entirely sure what's causing the Aggressive Mode Adaptive Reaping, but I'll need to analyze the options closely and try to determine the most likely reason.

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