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AAFM Exam CWM_LEVEL_2 Topic 6 Question 82 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 82
Topic #: 6
[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 Carmela at Jul 09, 2024, 10:48 AM

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Brynn
2 months ago
I disagree, I believe Plan B should be opted since it has a higher Present Value.
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Dortha
2 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
1 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
1 months ago
Definitely Plan B, immediate benefits are always better.
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Pamella
1 months ago
User 2: Plan B it is then. Who needs to wait for a higher future value?
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Lawrence
2 months ago
User 1: I agree, Plan B is the way to go. Higher present value means more money now.
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Wayne
3 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
3 months ago
Because Plan A has a higher Future Value, which means better returns.
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Mari
3 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
27 days ago
Plan B it is then. Let's make that initial investment work for us.
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Ma
29 days ago
Yeah, I agree. It's better to have more money now and invest it wisely.
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Arletta
1 months ago
I think Plan B is the way to go. Higher present value means more money upfront.
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Felicitas
1 months ago
User 3: Plan B it is then. We can use that extra cash wisely and hopefully make some good returns.
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Marion
2 months ago
User 2: I agree, Plan B seems like the better choice. Let's take advantage of that higher present value.
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Juan
2 months ago
User 1: I think Plan B is the way to go. Higher present value means more money to invest now.
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Felix
3 months ago
Why do you say that, Vanna?
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Elena
3 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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Stephanie
3 months ago
Plan B for sure! A higher present value means more money upfront, which is the way to go.
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Dexter
2 months ago
That's true, it really depends on Saxena's risk tolerance and investment goals.
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Joseph
2 months ago
I see your point, but I think having more money upfront is a safer bet.
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Tracey
3 months ago
But Plan A has a higher future value, wouldn't that be more beneficial in the long run?
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Elvera
3 months ago
Plan B for sure! A higher present value means more money upfront, which is the way to go.
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Vanna
3 months ago
I think Saxena should opt for Plan A.
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