CIMA Exam CIMAPRO19-P02-1 Topic 3 Question 81 Discussion

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

Question #: 81
Topic #: 3

[All CIMAPRO19-P02-1 Questions]

The discount rate at which the net present value (NPV) is zero is known as the

Aaccounting rate of return

Brisk adjusted discount rate

Cinternal rate of return

Dbreakeven point

Show Suggested Answer

Suggested Answer: A

by Dulce at Feb 10, 2024, 04:33 AM

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel

Robt

1 days ago

Ah, the good ol' IRR. It's like the Goldilocks of discount rates - not too high, not too low, just right for making that NPV hit that sweet spot of zero.

upvoted 0 times

...

Lenna

10 days ago

I'm not sure, but I think it's D) breakeven point because that's when costs equal revenue.

upvoted 0 times

...

Dewitt

14 days ago

I agree with Raylene. The internal rate of return is the discount rate at which NPV is zero.

upvoted 0 times

...

Audra

18 days ago

The internal rate of return (IRR) is the discount rate that makes the NPV equal to zero, so C) internal rate of return is the correct answer here.

upvoted 0 times

Krystal

4 days ago

I think the answer is C) internal rate of return.

upvoted 0 times

...

Raylene

18 days ago

I think the answer is C) internal rate of return.

upvoted 0 times

...