Exam CIMAPRA19-P03-1 Topic 4 Question 85 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam
Question #: 85
Topic #: 4
The board of OKN is considering an investment opportunity that will require the company to borrow a large amount in month 10 of the current financial year and to invest it immediately in property, plant and equipment. This investment has a positive net present value that justifies the risk, but the directors are reluctant to invest in the project.
Why might the directors be reluctant?

Suggested Answer: A Vote an answer

by Arlen at Mar 31, 2026, 11:51 AM

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