IMANET Exam CMA Topic 6 Question 105 Discussion

Actual exam question for IMANET's CMA exam

Question #: 105
Topic #: 6

[All CMA Questions]

A project requires an initial cash investment at its inception of $10,000, and no other cash outflows are necessary. Cash inflows from the project over its 3-year life are $6,000 at the end of the first year, $5,000 at the end of the second year, and $2,000 at the end of the third year. The future value interest factors for an amount of $1 at the firm's desired rate of return of 8% are

The present value interest factors for an amount of $1 for three periods are as follows:

The modified IRR (MIRR)for the project is closest to

A8%

B9%

C10%

D12%

Show Suggested Answer

Suggested Answer: D

Once an old piece of equipment has been disposed of, its histoncal cost no longer has an impact on a firms cash flows.

by Tamera at Jan 10, 2025, 03:35 AM

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Valentin

1 days ago

I think the MIRR for the project is closest to 10%.

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