Exam P3 Topic 1 Question 105 Discussion

Actual exam question for CIMA's P3 exam
Question #: 105
Topic #: 1
Having carried out a full capital appraisal for a construction project, H Company has approved the project with initial outflows of $6,000,000 and a net present value of $1,200,000.
The implementation phase has been commenced with 25% of the costs already committed. However when the ground was opened, an underground waterway was revealed which will need to be diverted if the project is to proceed. Work to carry out this diversion has been estimated at $1,300,000.
Which of the following factors will define whether the project should go ahead or not?

Suggested Answer: B,D Vote an answer

by Lionel at Jun 22, 2026, 01:26 PM

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