IMANET Exam CMA Topic 2 Question 108 Discussion

Actual exam question for IMANET's CMA exam

Question #: 108
Topic #: 2

[All CMA Questions]

The data available for the current year are given below.

using the information presented above, the contribution by Division I was?

A$190000

B$260,000

CS310.000

D$380 000

Show Suggested Answer

Suggested Answer: A

The NPV of both machines must be calculated and compared to determine which will yield a better return of cash flows. Machine A is calculated as one lump sum payable in 4 years minus the initial investment cost.

The NPV of Machine B is calculated as the present value of an ordinary annuity of

$13,000 for 4 years, minus the initial investment cost.

By comparing the NPV of both machines, Cliff would choose Machine A because NPV of A > NPV of B by $1,044.

by Nu at Mar 05, 2025, 04:19 AM

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Adolph

16 days ago

I'm going to have to double-check my work, but I think the answer is B) $260,000. That's my final answer... unless I change my mind again.

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Garry

1 days ago

I think the answer is B) $260,000.

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Natalie

18 days ago

Honestly, I'm just going to guess. This exam is making me hungry. Is it lunchtime yet?

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Tamera

23 days ago

This is a tricky one, but I'm going to go with D) $380,000. Gotta take a risk, you know?

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Jacquelyne

1 days ago

User 2: I'm not sure, but I'll go with B) $260,000.

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Lynelle

2 days ago

User 1: I think the answer is A) $190,000.

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Shayne

1 months ago

Hmm, I'm leaning towards C) $310,000. It just seems more in line with the information provided.

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Daron

23 days ago

I think it's actually B) $260,000. Division I's contribution seems to match that amount.

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Twanna

2 months ago

I calculated it and I am confident that the contribution was $310,000.

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Elvera

2 months ago

I disagree, I believe the contribution was $190,000.

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Kathrine

2 months ago

I think the contribution by Division I was $260,000.

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Lynelle

2 months ago

I'm pretty sure it's B) $260,000. The data looks straightforward enough.

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Carrol

5 hours ago

I'm not sure, but I think it might be C) $310,000. The numbers are a bit confusing.

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Helaine

4 days ago

I agree with you, I also think it's A) $190,000.

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Margurite

13 days ago

I think it's A) $190,000. Division I's contribution seems lower.

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Dick

19 days ago

I agree with you, it seems like the correct answer is B) $260,000.

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Markus

27 days ago

I think it's A) $190,000.

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