Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location
Mob_nav_barsMENU

CIMAPRO19-P02-1 Exam - Topic 1 Question 72 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 72
Topic #: 1
[All CIMAPRO19-P02-1 Questions]

An investment centre is appraising a potential project that is expected to yield a Return on Investment (ROI) of 12%.

Without the project the investment centre expects to earn an ROI of 14%. The cost of capital is 10%.

What would be the impact on the investment centre's performance measures if the project is accepted?

Show Suggested Answer Hide Answer
Suggested Answer: D

by Eden at Jul 31, 2023, 02:32 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Kasandra
6 days ago
I disagree, I think ROI will actually increase!
upvoted 0 times
...
Chauncey
12 days ago
Definitely think Residual Income will decrease.
upvoted 0 times
...
Meaghan
18 days ago
ROI is lower than expected without the project.
upvoted 0 times
...
Mertie
23 days ago
I recall that accepting a project with a lower ROI than the current one could actually decrease overall performance measures, but I can't remember if it affects ROI directly.
upvoted 0 times
...
Eun
29 days ago
I'm a bit unsure, but I feel like if the project has a lower ROI than the investment centre's current ROI, it could lead to a decrease in residual income.
upvoted 0 times
...
Cherry
1 month ago
I think I practiced a similar question where the ROI was compared to the cost of capital. If the project ROI is lower than the existing ROI, it might not be a good move.
upvoted 0 times
...
Walton
1 month ago
I remember that if the ROI from the project is lower than the current ROI, it could negatively impact the residual income.
upvoted 0 times
...
Ashleigh
1 month ago
Hmm, I'm a little confused on whether the Joint Commission only requires clinical staff involvement. I'll need to review that part carefully.
upvoted 0 times
...
Twana
2 months ago
The way I see it, the consistent time and location helps establish a predictable routine for the Daily Scrum, which makes it easier for the team to attend and participate. Option B seems like the most relevant answer to me.
upvoted 0 times
...
Daisy
2 months ago
I think AlertDialog is more about showing important messages rather than being just a small interface at the bottom.
upvoted 0 times
...
Lindsey
7 months ago
Oooh, this one's a brain-teaser! I'm leaning towards B, but I'm also wondering if the investment center has a secret stash of magic beans that could make the numbers work out differently.
upvoted 0 times
Hildred
5 months ago
D) Residual Income would increase and ROI would decrease.
upvoted 0 times
...
Effie
5 months ago
C) Residual Income would increase and ROI would increase.
upvoted 0 times
...
Dyan
5 months ago
B) Residual Income would decrease and ROI would decrease.
upvoted 0 times
...
Mable
5 months ago
A) Residual Income would decrease and ROI would increase.
upvoted 0 times
...
Lashaunda
5 months ago
D) Residual Income would increase and ROI would decrease.
upvoted 0 times
...
Irma
5 months ago
C) Residual Income would increase and ROI would increase.
upvoted 0 times
...
Hollis
6 months ago
B) Residual Income would decrease and ROI would decrease.
upvoted 0 times
...
Maryann
6 months ago
A) Residual Income would decrease and ROI would increase.
upvoted 0 times
...
...
Rebecka
7 months ago
This is a classic case of 'the numbers don't lie, but the accountants do.' I'm betting on B. Residual Income and ROI both go down. Unless, of course, the investment center is run by magicians.
upvoted 0 times
...
Twana
7 months ago
I'm going to go with D. If the project's ROI is lower, that means Residual Income will increase, but ROI will decrease. It's like getting a participation trophy, but with less actual performance.
upvoted 0 times
Hoa
6 months ago
That makes sense. It's like a trade-off between the two performance measures.
upvoted 0 times
...
Dorothy
7 months ago
I think you're right. Residual Income would increase, but ROI would decrease.
upvoted 0 times
...
...
Merilyn
7 months ago
Hmm, I think the answer is B. The project's ROI is lower than the current ROI, so that should decrease both Residual Income and ROI.
upvoted 0 times
...
Avery
7 months ago
This is a tricky one! The key is to understand how ROI and Residual Income are affected when the project's ROI is lower than the existing ROI.
upvoted 0 times
Louisa
6 months ago
That makes sense, since the project's ROI is lower than the existing ROI.
upvoted 0 times
...
Nicolette
6 months ago
B) Residual Income would decrease and ROI would decrease.
upvoted 0 times
...
Dusti
6 months ago
But wouldn't the overall performance measure be affected negatively?
upvoted 0 times
...
Basilia
7 months ago
A) Residual Income would decrease and ROI would increase.
upvoted 0 times
...
...
Margarita
7 months ago
Yes, you're right. So the answer would be A) Residual Income would decrease and ROI would increase.
upvoted 0 times
...
Von
7 months ago
But wouldn't the ROI increase in that case?
upvoted 0 times
...
Margarita
7 months ago
I think if the project is accepted, the Residual Income would decrease.
upvoted 0 times
...

Save Cancel