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Exam IIA-CIA-Part3 All Questions

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Exam IIA-CIA-Part3 topic 2 question 152 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 152
Topic #: 2
[All IIA-CIA-Part3 Questions]

Which of the following cost of capital methods identifies the time period required to recover the cost of the capital investment from the annual inflow produced?

  • A. Cash payback technique.
  • B. Annual rate of return technique.
  • C. Internal rate of return method.
  • D. Net present value method.
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Suggested Answer: A 🗳️

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emtofid
1 month, 1 week ago
Selected Answer: A
The cost of capital method that identifies the time period required to recover the cost of the capital investment from the annual inflow produced is A. Cash payback technique. The cash payback technique calculates the amount of time needed to recoup the initial investment from the cash inflows generated by the investment.
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