GAQM Exam CBAF-001 Topic 1 Question 44 Discussion

Actual exam question for GAQM's CBAF-001 exam

Question #: 44
Topic #: 1

Which of the following represents the total cash flows of an investment, over a period of time, adjusted to reflect the time value of money?

AThe Internal Rate of Return.

BThe Time to Payback.

CThe Net Present Value.

DThe Return on Investment.

Show Suggested Answer

Suggested Answer: C

by Jade at Apr 21, 2024, 10:40 PM

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Mariann

7 months ago

I believe it's C) The Net Present Value because it gives a more accurate representation of the investment's value.

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Page

7 months ago

I'm not sure, but I think it could also be A) The Internal Rate of Return.

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Sherman

7 months ago

I agree with User1. The Net Present Value takes into account the time value of money.

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Buddy

7 months ago

I think the answer is C) The Net Present Value.

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Jesusita

8 months ago

It is, but ROI doesn't specifically adjust for the time value of money like NPV does.

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Miesha

8 months ago

But isn't Return on Investment also related to cash flows?

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Claribel

8 months ago

Yes, you're correct. Net Present Value accounts for the time value of money.

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Jesusita

8 months ago

I think the answer is C) The Net Present Value.

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