Discuss IMANET CMA Exam Topic 4 Question 56

Which of the following is irrelevant in projecting the cash flows of the final year of a capital project?

ACash devoted to use in project.

BDisposal value of equipment purchased specifically for project

CDepreciation tax shield generated by equipment purchased specifically for project.

DHistorical cost of equipment disposed of in the projects first year.

Suggested Answer: D

Once an old piece of equipment has been disposed of, its histoncal cost no longer has an impact on a firms cash flows.

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12 comments · newest first

Lenna 11 months ago

Yeah, I thought historical costs could play a role too!

Leonard 11 months ago

B and C are important, but D is just noise.

Lavonna 12 months ago

Wait, are we sure about that? Seems like it could affect decisions.

Pok 12 months ago

I agree, historical costs don’t matter here.

Gracia 12 months ago

D is definitely irrelevant.

Joseph 1 year ago

I’m leaning towards option D being the irrelevant one since it’s about past costs, but I hope I’m not mixing it up with another question we did!

Lonny 1 year ago

I feel like the disposal value is definitely relevant, but I’m uncertain about the depreciation tax shield. It seems like it could be important too.

Buck 1 year ago

I think the historical cost of equipment might be irrelevant, but I'm not entirely sure. It feels like we focused more on current values in class.

Jesusita 1 year ago

I remember a practice question where we discussed the importance of cash flows, but I can't recall if historical costs were included.

Emmett 1 year ago

Okay, let's see. I know we can use the API to get process instances and their diagrams, but I'm not sure about deleting them. I'll have to review my notes.

Mozell 1 year ago

Okay, I've got this. The Scrum Development Team's goal is to develop a product increment that is potentially-ready for customer delivery. They don't necessarily have to complete the entire Sprint Backlog, as long as they have a usable piece of the product that could be shipped.

Donette 1 year ago

RTP performance, that's got to be it. The question is asking about the specific metric used, and RTP is the protocol that deals with those kinds of network quality measurements.

IMANET CMA Exam - Topic 4 Question 56 Discussion