AAFM Exam CWM_LEVEL_2 Topic 6 Question 82 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 82
Topic #: 6

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?

APlan A should be opted since it has a higher Future Value.

BPlan B should be opted since it has a lower Present Value.

CPlan B should be opted since it has a higher Present Value.

DPlan B should be opted since it has a lower Future Value.

Show Suggested Answer

Suggested Answer: C

by Carmela at Jul 09, 2024, 10:48 AM

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Brynn

4 months ago

I disagree, I believe Plan B should be opted since it has a higher Present Value.

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Dortha

4 months ago

Plan B all the way! Who needs a fancy future when you can have a bird in the hand? I'll take that higher present value and spend it all on avocado toast and beard grooming products.

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Sylvia

2 months ago

Plan B for sure, I'd rather have the cash in hand than wait for a higher future value.

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Beula

2 months ago

Definitely Plan B, immediate benefits are always better.

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Pamella

3 months ago

Plan B it is then. Who needs to wait for a higher future value?

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Lawrence

3 months ago

I agree, Plan B is the way to go. Higher present value means more money now.

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Wayne

4 months ago

Option C, baby! A higher present value means more money now, and that's all that matters. Besides, future value is for suckers who believe in things like 'compound interest' and 'financial planning'.

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Vanna

4 months ago

Because Plan A has a higher Future Value, which means better returns.

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Mari

4 months ago

I'm gonna have to go with Plan B. Lower future value? No problem! I'll just take that higher present value and invest it in the latest get-rich-quick scheme. What could go wrong?

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Josephine

2 months ago

Plan B it is then. Let's make that initial investment work for us.

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Ma

2 months ago

Yeah, I agree. It's better to have more money now and invest it wisely.

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Arletta

2 months ago

I think Plan B is the way to go. Higher present value means more money upfront.

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Felicitas

3 months ago

Plan B it is then. We can use that extra cash wisely and hopefully make some good returns.

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Marion

3 months ago

I agree, Plan B seems like the better choice. Let's take advantage of that higher present value.

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Juan

3 months ago

I think Plan B is the way to go. Higher present value means more money to invest now.

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Felix

4 months ago

Why do you say that, Vanna?

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Elena

4 months ago

Hmm, this one's tricky. But I'd have to go with Plan B since it has the higher present value. Who needs a fancy future value when you can have cash in hand?

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