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CIMA Exam CIMAPRO19-P02-1 Topic 7 Question 13 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 13
Topic #: 7
[All CIMAPRO19-P02-1 Questions]

The net present value of the cost of operating a machine for the next 4 years is 6,340. The discount rate used is 10%.

What is the equivalent annual cost and the present value of the cost in perpetuity of operating this machine?

Use discount factors to 3 decimal places.

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Suggested Answer: C

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