IIA Exam IIA-CIA-Part3 Topic 9 Question 100 Discussion

Actual exam question for IIA's IIA-CIA-Part3 exam

Question #: 100
Topic #: 9

Which of the following common quantitative techniques used in capital budgeting is best associated with the use of a table that describes the present value of an annuity?

ACash payback technique.

BDiscounted cash flow technique: net present value.

CAnnual rate of return

DDiscounted cash flow technique: internal rate of return.

Show Suggested Answer

Suggested Answer: B

by Jani at Mar 21, 2025, 02:39 PM

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Merlyn

8 days ago

I'm not sure, but I think C) Annual rate of return could also be a possible answer.

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Jamika

9 days ago

Cash payback? What is this, the Stone Age? B is the clear winner. Although, I do enjoy a good annuity pun now and then.

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Eladia

12 days ago

I agree with Sharen, because the present value of an annuity is best calculated using the net present value method.

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Deonna

12 days ago

I'm tempted to go with the internal rate of return, but the question specifically mentions the present value of an annuity table. Gotta be B.

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Lajuana

13 days ago

Ah, the old NPV trick. This one's a no-brainer, guys. Definitely option B.

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Reyes

5 days ago

I think I'll go with option D, internal rate of return. It seems like a solid choice.

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Helene

9 days ago

I agree, net present value is the way to go. Option B all the way.

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Alaine

23 days ago

Hmm, I think the discounted cash flow technique with net present value is the way to go here. That table is key for calculating the present value of an annuity.

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Glen

7 days ago

I agree, the discounted cash flow technique with net present value is definitely the best choice for this.

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Sharen

26 days ago

I think the answer is B) Discounted cash flow technique: net present value.

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