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Exam CFM Topic 7 Question 14 Discussion

Actual exam question for IFMA's CFM exam
Question #: 14
Topic #: 7
The finance director has asked the facility manager to prepare a financial analysis comparing two alternatives for roofing system replacements. Each option has a different first cost, annual maintenance, and expected useful life. Which capital investment analysis technique would best consider the time value of money in the comparison?

Suggested Answer: C Vote an answer

Net Present Value (NPV) (Option C) is the best financial analysis method for comparing investments while considering the time value of money.
Why Option C is Correct?
* NPV accounts for the future cash flows of an investment, adjusted for inflation and discount rates.
* It helps FM professionals compare long-term financial impacts and determine the most cost- effective solution.
* IFMA's Finance & Business Core Competency requires FM leaders to use NPV for capital investment decisions.
Why Other Options Are Incorrect?
* Option A (Benchmarking): Benchmarking compares performance and best practices, but does not consider financial time value.
* Option B (Payback): Payback period only measures how quickly an investment recoups costs, but ignores future cash flows.

by Brandon at Apr 18, 2026, 01:55 PM

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Here are all the actual test exam dumps for IT exams. Most people prepare for the actual exams with our test dumps to pass their exams. So it's critical to choose and actual test pdf to succeed.

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