CIMA Exam CIMAPRO19-P02-1 Topic 4 Question 92 Discussion

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

Question #: 92
Topic #: 4

[All CIMAPRO19-P02-1 Questions]

The following calculation of the net present value (NPV) of a project has been produced.

By how much can the forecast revenue decrease before the project is not viable?

A7.2%

B35.6%

C$20,000 per year

D$21,380 in total

Show Suggested Answer

Suggested Answer: A

by Lorean at Jul 08, 2024, 07:32 AM

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Justine

29 days ago

I'm pretty sure the answer is B, but I'm also pretty sure my calculator is held together with duct tape and dreams. Fingers crossed!

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Stacey

1 months ago

B) 35.6% is the way to go. I mean, who doesn't love a good 35.6% revenue decrease? It's the spice of life!

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Coletta

1 days ago

B) 35.6%

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Sheridan

5 days ago

A) 7.2%

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Mayra

2 months ago

Hmm, I'm torn between B and D. Guess I'll go with B, since a 35.6% decrease seems more realistic than a fixed dollar amount.

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Dorsey

25 days ago

Bobbye: Okay, I'll go with B) 35.6% as well.

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Carry

1 months ago

User 3: I agree with Carry, a percentage decrease seems more realistic.

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Bobbye

1 months ago

User 2: I'm not sure, I'm leaning towards B) 35.6% decrease.

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Candida

1 months ago

User 1: I think the answer is D) $21,380 in total.

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Marylou

2 months ago

I'm pretty sure the answer is B. It makes sense that the revenue can decrease by a significant amount before the project becomes unviable.

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Skye

2 months ago

But if the revenue decreases by $20,000 per year, the project may not be viable.

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Ozell

2 months ago

I disagree, I believe it can decrease by 7.2%.

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Sommer

2 months ago

The correct answer is B) 35.6%. This represents the maximum decrease in forecast revenue before the project becomes not viable, based on the given NPV calculation.

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Dominga

26 days ago

That's correct. The NPV calculation shows that a decrease of 35.6% in forecast revenue is the limit before the project becomes not viable.

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Kris

29 days ago

I think the forecast revenue can decrease by 35.6% before the project is not viable.

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Skye

2 months ago

I think the forecast revenue can decrease by $20,000 per year.

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