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| Vendor: | CIMA |
|---|---|
| Exam Code: | CIMAPRO19-P02-1 |
| Exam Name: | P2 Advanced Management Accounting |
| Exam Questions: | 202 |
| Last Updated: | June 23, 2026 |
| Related Certifications: | CIMA Professional Qualification |
| Exam Tags: |
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$30.328 million is to be invested in a project that will yield annual net cash inflows of $8 million for 5 years.
What is the project's internal rate of return (IRR)?
Give your answer to the nearest whole percentage.
Oliver owns a computer repair company. He is looking to close of of his departments as the demand for computer cleaning has dropped dramatically in the last 2 years and is no longer profitable.
The contribution margin of the department is 12,000, and the overheads are 23,000 (out of which 4,000 cannot be eliminated).
How would closing this department impact operating income?
An organization has the right to mine for gold on its land. The price of gold and the cost of extraction are such that mining is not currently financially viable. However, the organization has the right to commence mining at any time in the future if the price of gold increases and makes mining financially viable.
This right to commence mining in the future is an option to:
A project requires an initial investment of $50,000. It will generate positive cash flows for two years as follows.

The cost of capital is 12% per year.
What is the equivalent annual net present value of the project?
Give your answer to the nearest $10.
Company TTM has the opportunity to invest $60,000 in a project. The project is anticipated to produce annual returns of $12,500 each year for 8 years. The cost of capital is 12%.
What is the net present value of the project? Give your answer to the nearest whole number.
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