AGA Exam CGFM Topic 2 Question 25 Discussion

Actual exam question for AGA's CGFM exam

Question #: 25
Topic #: 2

[All CGFM Questions]

A township wants to buy a new piece of equipment that will reduce costs by $20,550 at the end of year 2. If the

township could invest its funds at a rate of 10%, what is the most the township should spend now to get the return it

desires?

A$16,440

B$16,983

C$18,495

D$20,550

Show Suggested Answer

Suggested Answer: D

by Kattie at Feb 25, 2023, 12:00 PM

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3 days ago

I disagree, I believe the answer is A) $16,440 because we need to consider the present value of the future savings.

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4 days ago

I think the answer is D) $20,550.

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