American Bankers Association Exam CTFA Topic 6 Question 57 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 57
Topic #: 6

[All CTFA Questions]

The discount rate at which two projects have identical is referred to as Fisher's rate of intersection.

APresent values

BNet present values

CIRRs

DProfitability indexes

Show Suggested Answer

Suggested Answer: B

by Sylvie at Dec 27, 2023, 04:25 AM

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Noel

1 months ago

I thought it was Fisher's rate of intersection for two fishermen arguing over who caught the bigger fish. Silly me!

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Phil

1 months ago

A) Present values, of course! Fisher's rate is all about finding the discount rate where the present values are equal.

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Dorthy

9 days ago

A) Present values, of course! Fisher's rate is all about finding the discount rate where the present values are equal.

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Carissa

2 months ago

Hmm, I'm not too sure about this one. The options are a bit tricky, but I'll go with D) Profitability indexes just to be different.

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Aliza

10 days ago

I agree with you, I also think it's C) IRRs.

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Kasandra

12 days ago

I'm going with B) Net present values.

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Willie

18 days ago

I think the correct answer is C) IRRs.

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Tommy

2 months ago

B) Net present values sounds right to me. If the NPVs are the same, then the discount rates must be equal.

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Elouise

1 days ago

B) Net present values are a commonly used metric in project evaluation.

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Diane

5 days ago

C) IRRs can also be used to evaluate the potential return of an investment.

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Osvaldo

8 days ago

B) Yes, Net present values are crucial for determining the profitability of a project.

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Whitney

15 days ago

A) Present values are also important to consider when comparing projects.

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Josue

16 days ago

D) Profitability indexes can provide additional insight into the overall profitability of a project.

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Tarra

1 months ago

C) IRRs can also be used to determine the discount rate at which two projects have identical values.

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Raylene

2 months ago

A) Present values are also important to consider when comparing projects.

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Annita

2 months ago

I'm not sure, but I think it might also be B) Net present values.

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Ronald

2 months ago

I agree with Diane, because Fisher's rate of intersection is related to IRRs.

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Diane

2 months ago

I think the answer is C) IRRs.

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Felicia

2 months ago

Easy, it's C) IRRs. I remember learning about Fisher's rate of intersection being the discount rate where two projects have the same internal rate of return.

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Chau

25 days ago

That's correct! It's C) IRRs. Fisher's rate of intersection is where the projects have identical internal rates of return.

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Janey

28 days ago

Yes, you're right! Fisher's rate of intersection is indeed the discount rate at which two projects have the same internal rate of return.

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Jina

29 days ago

Yes, that's correct. It's the discount rate at which the projects' present values are equal.

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Wilda

1 months ago

I agree, it's C) IRRs. Fisher's rate of intersection is where the projects have the same internal rate of return.

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Samira

1 months ago

Definitely! It's a useful concept in investment decision-making.

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Jodi

1 months ago

That's correct. It's interesting how Fisher's rate of intersection helps in comparing projects based on their internal rate of return.

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Shelia

1 months ago

So, the answer is C) IRRs.

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Lettie

1 months ago

Yes, you're right! Fisher's rate of intersection is indeed the discount rate at which two projects have the same internal rate of return.

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Kati

2 months ago

I'm not sure, but I think it might be B) Net present values.

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Glory

2 months ago

I agree with Beckie, because Fisher's rate of intersection is related to IRRs.

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Beckie

3 months ago

I think the answer is C) IRRs.

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