CIMA Exam CIMAPRO19-P02-1 Topic 8 Question 97 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 97
Topic #: 8

SQ has the opportunity to invest in project X. The net present value for project X is $12,600. Cash inflows occur in years 1, 2 and 3. The company's cost of capital is 14%.

Calculate the annualized equivalent annuity of project X.

Give your answer to the nearest whole $.

A$5429

Show Suggested Answer

Suggested Answer: A

by India at Sep 15, 2024, 09:02 AM

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Isreal

4 months ago

This is a piece of cake. I can do this in my sleep. $5429 is the way to go.

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Carli

4 months ago

Wait, what? Annualized equivalent annuity? Someone's trying to trip us up here!

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Luisa

3 months ago

The answer is $5429. We got this!

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Chara

3 months ago

I think we need to use the formula for calculating the annualized equivalent annuity.

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Lili

3 months ago

Let's calculate the annualized equivalent annuity of project X.

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Cecilia

5 months ago

Easy peasy! A is the correct answer, no doubt about it.

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Shawnda

4 months ago

A) $5429

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Daren

5 months ago

Hmm, I'm not sure about this. I think I need to double-check the calculations.

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Ashley

4 months ago

Maybe we missed something in the calculation, let's go over it again.

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Melynda

4 months ago

I agree, let's double-check the calculations to be sure.

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Carline

5 months ago

I think you should recalculate the annualized equivalent annuity.

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Selene

5 months ago

I'm not sure about the calculation. Should we double check the numbers?

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Ma

5 months ago

I agree with Joseph. The cost of capital is 14% so the calculation makes sense.

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Gayla

5 months ago

This looks straightforward. I'll go with option A - $5429.

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William

5 months ago

Yes, I also calculated the annualized equivalent annuity to be $5429.

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Phyliss

5 months ago

I agree, option A - $5429 seems like the correct choice.

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Joseph

5 months ago

I think the annualized equivalent annuity of project X is $5429.

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