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

3 months ago

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

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Jamika

3 months 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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Corrinne

1 months ago

Cash payback is so outdated, we need to focus on the present value of an annuity.

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Alisha

1 months ago

I think D could also be a good option, it's all about that internal rate of return.

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Jesus

2 months ago

Yeah, the discounted cash flow technique is the way to go.

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Germaine

2 months ago

I agree, B is definitely the best choice here.

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Raina

2 months ago

Cash payback is so outdated, we need to focus on the present value of an annuity.

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Mitsue

2 months ago

I think D could also be a good option, it's all about that internal rate of return.

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Alecia

2 months ago

Yeah, the discounted cash flow technique is the way to go.

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Val

3 months ago

I agree, B is definitely the best choice here.

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Eladia

3 months 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

3 months 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

4 months ago

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

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Lera

3 months ago

I'm sticking with option B as well. NPV is a classic for a reason.

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Reyes

3 months ago

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

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Helene

3 months ago

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

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Alaine

4 months 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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