Worldatwork Exam T7 Topic 1 Question 94 Discussion

Actual exam question for Worldatwork's T7 exam

Question #: 94
Topic #: 1

Which of the following should be used when discounting a benefit in order to determine the present value of the defined benefit obligation and the current service cost?

AFair value

BTime value of money

CNet present value

DThe corporate vision

Show Suggested Answer

Suggested Answer: C

by Mitzie at Aug 02, 2024, 05:42 AM

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Teddy

2 months ago

I believe A) Fair value might be relevant in certain situations as well.

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Glory

2 months ago

I think C) Net present value could also be considered for determining present value.

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Marleen

2 months ago

I agree with Rosalia, time value of money is essential for discounting benefits.

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Rosalia

2 months ago

B) Time value of money should be used.

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Sommer

2 months ago

I believe A) Fair value may not be the best option for discounting benefits in this case.

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Adell

2 months ago

I think C) Net present value could also be considered for determining present value.

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Raylene

2 months ago

I agree with Sina, time value of money is essential for discounting benefits.

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Rebeca

3 months ago

Personally, I'd go with A. Fair value. Isn't that what we're trying to find here? The fair value of the defined benefit obligation?

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Ashleigh

3 months ago

B. Time value of money, of course. You can't determine the present value without considering the time value.

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Halina

3 months ago

Hmm, I'm not sure. D. The corporate vision? That sounds like it's completely irrelevant to this question. What were they thinking?

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Norah

1 months ago

I think B) Time value of money is the correct choice for discounting a benefit.

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Galen

1 months ago

Definitely not D) The corporate vision, it has to be one of the other options.

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Pa

2 months ago

I agree, D) The corporate vision doesn't seem to be the correct choice here.

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Grover

2 months ago

D) The corporate vision

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Lourdes

2 months ago

C) Net present value

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Angelo

2 months ago

B) Time value of money

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Polly

2 months ago

A) Fair value

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Ashanti

3 months ago

C. Net present value seems like the obvious choice here. Discounting a benefit is all about finding the NPV, right?

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Brande

2 months ago

C. Net present value seems like the obvious choice here. Discounting a benefit is all about finding the NPV, right?

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Dorcas

2 months ago

D) The corporate vision

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Caitlin

2 months ago

C) Net present value

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Nickie

2 months ago

B) Time value of money

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Gregg

2 months ago

A) Fair value

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Sina

3 months ago

B) Time value of money should be used.

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Lourdes

3 months ago

I think the answer is B. Time value of money is the key factor in discounting a benefit to determine the present value.

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Stephen

2 months ago

I agree, B) Time value of money is crucial in discounting benefits for present value calculations.

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Misty

2 months ago

Net present value is also important in evaluating investment projects.

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Raina

2 months ago

Yes, it helps in discounting future cash flows to their present value.

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Daron

2 months ago

I agree, the time value of money is crucial in determining the present value.

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Kris

2 months ago

D) The corporate vision

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Frank

2 months ago

C) Net present value

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Holley

3 months ago

B) Time value of money

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Samira

3 months ago

A) Fair value

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