GAQM Exam CBAF-001 Topic 6 Question 42 Discussion

Actual exam question for GAQM's CBAF-001 exam

Question #: 42
Topic #: 6

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 Rory at Mar 19, 2024, 02:42 AM

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Jenise

6 months ago

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

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Celestine

6 months ago

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

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Leatha

6 months ago

I agree with Shaunna, because the Net Present Value takes into account the time value of money.

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Shaunna

6 months ago

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

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Sherill

6 months ago

Yes, IRR does consider the time value of money, but NPV is more accurate in measuring the total cash flows.

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Francoise

7 months ago

But what about IRR, doesn't that also consider time value of money?

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Corinne

7 months ago

I agree, NPV takes into account the time value of money.

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Alex

7 months ago

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

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