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AAFM Exam CWM_LEVEL_2 Topic 2 Question 92 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 92
Topic #: 2
[All CWM_LEVEL_2 Questions]

Section C (4 Mark)

Read the senario and answer to the question.

Saxena is considering an attractive investment proposal in which he is being offered two different cash flow choices at the same initial investment of Rs. 2,00,000. According to you which one should he opt for assuming Risk Free Interest Rate is the required rate of return?

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Suggested Answer: C

by Craig at Oct 23, 2024, 04:29 PM

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Slyvia
1 months ago
Haha, I bet Saxena is scratching his head right now, trying to figure out which plan to choose. Maybe he should just flip a coin and see what happens!
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Dorsey
1 months ago
Wait, wait, wait. Didn't you guys read the question? It says the required rate of return is the Risk-Free Interest Rate. That means Plan B is the correct answer, since it has the higher Present Value.
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Hui
19 days ago
I think Plan A should be opted since it has a higher Future Value.
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Ming
1 months ago
I'm gonna have to disagree. Plan B has a higher Present Value, which is more important for an investment decision. Saxena should go with Plan B.
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Latia
10 days ago
I agree, Saxena should opt for Plan B since it has a higher Present Value.
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Cary
14 days ago
True, but Present Value is more crucial for decision-making in this case.
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Ammie
21 days ago
But Plan A has a higher Future Value, which is also important to consider.
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Nadine
27 days ago
I think Plan B is the better choice because it has a higher Present Value.
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Wilbert
1 months ago
Plan A has a higher Future Value, so that's the obvious choice. Saxena would be crazy not to go with that one.
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Pedro
19 days ago
True, but Plan B has a higher Present Value, so it might be the safer choice.
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Tamekia
21 days ago
But Plan B has a lower Present Value, which could also be a good option.
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Derick
30 days ago
I agree, Plan A is the better choice with a higher Future Value.
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Rebbeca
2 months ago
I disagree, I believe Plan B is the better choice because it has a higher Present Value.
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Joanna
2 months ago
I think Saxena should opt for Plan A.
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