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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
2 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
2 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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Francoise
26 days ago
Great, glad we cleared that up. Plan B it is!
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Angelyn
29 days ago
Oh, I see. That makes sense. Plan B it is then.
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Arlene
1 months ago
But the question mentions that the required rate of return is the Risk-Free Interest Rate, so Plan B should be opted since it has a higher Present Value.
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Hui
2 months ago
I think Plan A should be opted since it has a higher Future Value.
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Ming
2 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
1 months ago
I agree, Saxena should opt for Plan B since it has a higher Present Value.
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Cary
2 months ago
True, but Present Value is more crucial for decision-making in this case.
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Ammie
2 months ago
But Plan A has a higher Future Value, which is also important to consider.
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Nadine
2 months ago
I think Plan B is the better choice because it has a higher Present Value.
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Wilbert
3 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
2 months ago
True, but Plan B has a higher Present Value, so it might be the safer choice.
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Tamekia
2 months ago
But Plan B has a lower Present Value, which could also be a good option.
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Derick
2 months ago
I agree, Plan A is the better choice with a higher Future Value.
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Rebbeca
3 months ago
I disagree, I believe Plan B is the better choice because it has a higher Present Value.
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Joanna
3 months ago
I think Saxena should opt for Plan A.
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