APMG-International Exam Better-Business-Cases-Practitioner Topic 6 Question 21 Discussion

Actual exam question for APMG-International's Better-Business-Cases-Practitioner exam

Question #: 21
Topic #: 6

[All Better-Business-Cases-Practitioner Questions]

The Financial Appraisal for the new campus includes the cost of inflation over the life of the scheme.

Is this an appropriate application of the Five Case Model for the project?

ANo, because the Financial Appraisal should be based on constant prices.

BNo, because it is the Economic Appraisal that should include the cost of inflation.

CYes, because this will be an on going cost to the new campus over the life of the scheme.

DYes, because all of the new campus assets will decrease in value over the life of a scheme.

Show Suggested Answer

Suggested Answer: A

by Julieta at Jan 09, 2025, 07:26 PM

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Yasuko

2 days ago

I think D is the right choice. All the new assets will lose value over time, so it's important to factor in inflation. This is a 'priceless' piece of information for the project.

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Hildred

8 days ago

Option B makes more sense to me. The Economic Appraisal should account for the cost of inflation, not the Financial Appraisal. I hope the exam question isn't too 'inflated'!

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Daniela

14 days ago

Option C is the correct answer. The Financial Appraisal should include the cost of inflation over the life of the scheme to accurately estimate the ongoing costs.

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