A company’s management accountant wishes to calculate the present value of the cost of renting...

CIMA BA2 Question Answer

A company’s management accountant wishes to calculate the present value of the cost of renting a delivery vehicle. There will be five annual rental payments of $5,000, the first of which is due immediately. The company’s discount rate is 12%.

Which TWO of the following are valid ways to calculate the present value of the rental payments? (Choose two.)

$5,000 + ($5,000 x 3.605)

$5,000 + $5,000/1.12 + $5,000/(1.12)2 + $5,000/(1.12)3 + $5,000/(1.12)4

$5,000/1.12 + $5,000/(1.12)2 + $5,000/(1.12)3 + $5,000/(1.12)4+ $5,000/(1.12)5

$5,000 x 3.605

$5,000 + ($5,000 x 3.037)

CIMA BA2 View All Questions

CIMA BA2 Summary

Vendor: CIMA
Product: BA2
Update on: Jul 29, 2025
Questions: 392

Price: $52.5 ~~$149.99~~

The records of a manufacturing company show the following relationship between total cost and output.

The following is an extract from a budgetary control report for the latest period:The budget...

Weekend Sale Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: xmasmnth

A company’s management accountant wishes to calculate the present value of the cost of renting...

The Answer Is:

CIMA BA2 Summary

Payments We Accept

Contact Us