CIMA P2 Chapter 13 Test

Name: CIMA P2 Chapter 13 Test
Uploaded: 2016-08-10T11:34:52+01:00
Description: CIMA P2 Chapter 13 Test

chimporera says
February 9, 2023 at 8:04 am
Question 3 required me to pay attention to detail-consider NPV not PV.
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bigbird says
December 16, 2020 at 9:43 am
I think question 3 is incorrect.
The profitability index numbers show the order of projects we would like to invest in is B, A, C, D. The total amount we have available for investment would cover all of projects B, A, C and so D would be left out. So why does the answer state that we would miss out on C and complete 75% of D instead. Am I missing something?
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darsh123 says
December 3, 2019 at 11:39 am
Should the answer be 710,000 when choosing QQ and RR?
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- horizon856 says
  July 20, 2020 at 10:58 am
  Yes you are right
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- bigbird says
  December 16, 2020 at 9:46 am
  No. The NPV that is required is the total inflows less total investment 710,000 – 345,000 = 365,000
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