Pass the AACE International AACE Certification CCP Questions and answers with CertsForce

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Questions # 51:

Question # 51

The following question requires your selection of CCC/CCE Scenario 2 (2.3.50.1.2) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

10,278 hours have been expended to date. The CPI at this point in time is 0.93. SPI is 1.03. How many hours were planned?

Options:

A.

10,586


B.

9,280


C.

9,559


D.

10,278


Expert Solution
Questions # 52:

______________can be defined as the determination of that course of action or combination of alternatives that yields either the lowest cost or the highest profit.

Options:

A.

Economic optimization


B.

Simulation


C.

Linear programming


D.

Dynamic programming


Expert Solution
Questions # 53:

Which of the following is NOT a type of float?

Options:

A.

Total


B.

Negative


C.

Open end


D.

Free


Expert Solution
Questions # 54:

A used concrete pumping truck can be purchased for $125,000. The operation costs are expected to be $65,000 the first year and increase 5% each year thereafter. As a result of the purchase, the company will see an increase in income of $100,000 the first year and 5% more each subsequent year. The company uses straight-line depreciation. The truck will have a useful life of five (5) years and no salvage value. Management would like to see a 10% return on any investment. The company's tax rate is 28%.

What Kind of optimization modeling is used in making investment analysis to evaluate the risks associated with the potential investment?

Options:

A.

Linear Probability Model


B.

Business Modeling


C.

Five-stop Regression Model


D.

Monte Carlo Simulation


Expert Solution
Questions # 55:

A bond that guarantees the bidder will enter into a contract on the basis of his/her bid is referred to as:

Options:

A.

Surety bond


B.

Performance bond


C.

Bid bond


D.

Liability bond


Expert Solution
Questions # 56:

An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.

Answer the question using a straight line depreciation and a 10% interest rate.

If $100,000 is needed to purchase a piece of equipment 3 years from now, how much money needs to be invested today assuming a 10% rate of return (rounded to the nearest thousand)?

Options:

A.

$78,000


B.

$70,000


C.

$75,000


D.

$82,000


Expert Solution
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