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CIMA Advanced Management Accounting P2 Question # 9 Topic 1 Discussion

CIMA Advanced Management Accounting P2 Question # 9 Topic 1 Discussion

P2 Exam Topic 1 Question 9 Discussion:
Question #: 9
Topic #: 1

A company is investing $150,000 in a project which will yield an annual cash inflow of $40,000 for eight years. The company's cost of capital is 10%.

To the nearest $100, what is the project's equivalent annual net present value?


A.

$11,900


B.

$7,900


C.

$63,400


D.

$21,300


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