Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Nov 2211:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment- Nov 23
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Nov 2510:00 AM EST
-11:00 AM EST
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
15 Apr 2025, 12:09
Kudos
Bookmarks
The investment team is evaluating several opportunities across six cities. The team leader has established the following financial criteria to guide investment decisions:
• Profit (defined as 5-year returns minus investment cost) must be at least $100 million
• The ratio of 5-year returns to investment cost must be at least 2
• The 5-year IRR (Internal Rate of Return) must be at least 20%
• Profit (defined as 5-year returns minus investment cost) must be at least $100 million
• The ratio of 5-year returns to investment cost must be at least 2
• The 5-year IRR (Internal Rate of Return) must be at least 20%
City C, City D, City F
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
86% (02:41) correct
14%
(02:28)
wrong
based on 177
sessions
History
Date
Time
Result
Not Attempted Yet
Considering only the team leader’s financial criteria for investment and the investment data, which of the following includes all cities that satisfy the investment requirements?
| City C | |
| City F | |
| City A, City C, City F | |
| City C, City D, City F | |
| City D, City F |
ShowHide Answer
Official Answer
City C, City D, City F
The legal team evaluates risks that may affect both project feasibility and investment security.: Yes
Risk of significant project delays may deem an investment not feasible.: Yes
The legal team only considers current political and economic conditions when assessing investment risk.: No
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
75% (01:23) correct
25%
(01:52)
wrong
based on 209
sessions
History
Date
Time
Result
Not Attempted Yet
For each of the following statements, select Yes if the statement is accurate based on the information provided. Otherwise, select No.
| Yes | No | |
| The legal team evaluates risks that may affect both project feasibility and investment security. | ||
| Risk of significant project delays may deem an investment not feasible. | ||
| The legal team only considers current political and economic conditions when assessing investment risk. |
ShowHide Answer
Official Answer
The legal team evaluates risks that may affect both project feasibility and investment security.: Yes
Risk of significant project delays may deem an investment not feasible.: Yes
The legal team only considers current political and economic conditions when assessing investment risk.: No
City D meets the financial criteria but is not recommended for investment based on the legal team’s review.: True
Cities C and F are the only investment opportunities that remain viable after all criteria are applied.: True
City E fails to meet both the financial criteria and the legal team’s risk guidelines.: True
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
88% (00:57) correct
12%
(01:12)
wrong
based on 180
sessions
History
Date
Time
Result
Not Attempted Yet
For each of the following statements, select True if the statement is accurate based on the financial criteria, the investment data, and the legal risk assessments. Otherwise, select False.
| True | False | |
| City D meets the financial criteria but is not recommended for investment based on the legal team’s review. | ||
| Cities C and F are the only investment opportunities that remain viable after all criteria are applied. | ||
| City E fails to meet both the financial criteria and the legal team’s risk guidelines. |
ShowHide Answer
Official Answer
City D meets the financial criteria but is not recommended for investment based on the legal team’s review.: True
Cities C and F are the only investment opportunities that remain viable after all criteria are applied.: True
City E fails to meet both the financial criteria and the legal team’s risk guidelines.: True
23 Apr 2025, 02:15
Kudos
Bookmarks
Official Solution:
To meet the financial criteria, a city must have:
• Profit ≥ $100m
• Return-to-investment ratio ≥ 2
• IRR ≥ 20%
For each city — check criteria in order and stop at the first failure. • City A: Profit = $100m (meets), Ratio = 1.2 (fails) → Does not meet criteria.
• City B: Profit = $200m (meets), Ratio = 1.29 (fails) → Does not meet criteria.
• City C: Profit = $480m (meets), Ratio = 5 (meets), IRR = 30% (meets) → Meets criteria.
• City D: Profit = $450m (meets), Ratio = 2.13 (meets), IRR = 20% (meets) → Meets criteria.
• City E: Profit = $50m (fails) → Does not meet criteria.
• City F: Profit = $400m (meets), Ratio = 9 (meets), IRR = 45% (meets) → Meets criteria.
Correct answer:
Considering only the team leader’s financial criteria for investment and the investment data, which of the following includes all cities that satisfy the investment requirements? "City C, City D, City F"
Bunuel
To meet the financial criteria, a city must have:
• Profit ≥ $100m
• Return-to-investment ratio ≥ 2
• IRR ≥ 20%
For each city — check criteria in order and stop at the first failure. • City A: Profit = $100m (meets), Ratio = 1.2 (fails) → Does not meet criteria.
• City B: Profit = $200m (meets), Ratio = 1.29 (fails) → Does not meet criteria.
• City C: Profit = $480m (meets), Ratio = 5 (meets), IRR = 30% (meets) → Meets criteria.
• City D: Profit = $450m (meets), Ratio = 2.13 (meets), IRR = 20% (meets) → Meets criteria.
• City E: Profit = $50m (fails) → Does not meet criteria.
• City F: Profit = $400m (meets), Ratio = 9 (meets), IRR = 45% (meets) → Meets criteria.
Correct answer:
Considering only the team leader’s financial criteria for investment and the investment data, which of the following includes all cities that satisfy the investment requirements? "City C, City D, City F"
24 Apr 2025, 01:15
Kudos
Bookmarks
Official Solution:
The legal team evaluates risks that may affect both project feasibility and investment security.
• Tab 3 shows that the legal team considers risks affecting project feasibility (for example, City A has environmental regulations causing delays; City D has a moratorium preventing large-scale developments) and risks affecting investment security (for example, City B has political instability; City E has a history of expropriating foreign assets). Answer: Yes
Risk of significant project delays may deem an investment not feasible.
• Tab 3 shows that the legal team does not recommend investing in cities with risk of significant project delays (for example, City A has environmental regulations causing delays; City D has a moratorium that may prevent project completion). Answer: Yes
The legal team only considers current political and economic conditions when assessing investment risk.
• Tab 3 shows that the legal team considers not only current political and economic conditions but also other risks (for example, City A is affected by environmental regulations; City E is excluded due to a history of expropriating foreign assets). Answer: No
Correct answer:
The legal team evaluates risks that may affect both project feasibility and investment security. "Yes"
Risk of significant project delays may deem an investment not feasible. "Yes"
The legal team only considers current political and economic conditions when assessing investment risk. "No"
Bunuel
The legal team evaluates risks that may affect both project feasibility and investment security.
• Tab 3 shows that the legal team considers risks affecting project feasibility (for example, City A has environmental regulations causing delays; City D has a moratorium preventing large-scale developments) and risks affecting investment security (for example, City B has political instability; City E has a history of expropriating foreign assets). Answer: Yes
Risk of significant project delays may deem an investment not feasible.
• Tab 3 shows that the legal team does not recommend investing in cities with risk of significant project delays (for example, City A has environmental regulations causing delays; City D has a moratorium that may prevent project completion). Answer: Yes
The legal team only considers current political and economic conditions when assessing investment risk.
• Tab 3 shows that the legal team considers not only current political and economic conditions but also other risks (for example, City A is affected by environmental regulations; City E is excluded due to a history of expropriating foreign assets). Answer: No
Correct answer:
The legal team evaluates risks that may affect both project feasibility and investment security. "Yes"
Risk of significant project delays may deem an investment not feasible. "Yes"
The legal team only considers current political and economic conditions when assessing investment risk. "No"
