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Exam IIBA-CBDA topic 1 question 41 discussion

Actual exam question from IIBA's IIBA-CBDA
Question #: 41
Topic #: 1
[All IIBA-CBDA Questions]

Based on the financial analysis that’s been completed by the analytics team, the business analysis professional reminds the team that the most financially feasible option is the one with the:

  • A. Highest ROI, lowest present value, highest NPV and lowest payback period
  • B. Highest ROI, lowest present value, lowest NPV and highest payback period
  • C. Highest ROI, highest present value, highest NPV, and lowest payback period
  • D. Highest ROI, highest present value, lowest NPV and highest payback period
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Suggested Answer: C 🗳️

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f83734b
1 month ago
Disagree. Answer C. High Present Value is better than Low Present Value
upvoted 1 times
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Rabbitsfoot
4 months ago
Selected Answer: A
See BABOK 10.20 Financial analysis. I'm going with A, because: Highest ROI: This is good as it shows a high return relative to the investment. Maximize return. Lowest Present Value: This is good as it means less current expenditure. Minimizes current cost. Highest NPV: This is good as it indicates greater value added from the investment. Maximizes net value. Lowest Payback Period: This is good as it shows the investment will be recovered quickly. Minimizes time to recover investment.
upvoted 2 times
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A (35%)
C (25%)
B (20%)
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