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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

Contribute your Thoughts:

Ming
6 days 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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Wilbert
10 days 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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Rebbeca
26 days ago
I disagree, I believe Plan B is the better choice because it has a higher Present Value.
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Joanna
1 months ago
I think Saxena should opt for Plan A.
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