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Questions # 51:

A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of the design contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data.

The recognition of loss of value of a natural resource used in the production process is referred to as:

Options:

A.

Capital reduction

B.

Net loss

C.

Depreciation

D.

Depletion

Expert Solution
Questions # 52:

Which of the following is NOT a part of the five (5) phases of value engineering?

Options:

A.

Cost reduction

B.

Functional analysis

C.

Creative

D.

Information gathering

Expert Solution
Questions # 53:

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%.

The compound interest factor used to determine Present Value in year number 5 is:

Options:

A.

0.3790

B.

0.6209

C.

1.6051

D.

0.6830

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%.

Is a rise in the price level of a good or service, or market basket of goods and/or services.

Options:

A.

escalation

B.

deflation

C.

incremental costs

D.

inflation

Expert Solution
Questions # 55:

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%.

SCENARIO: A can manufacturing company requested you to provide data for their decision making. The unit prices of the can vary but an average selling price of $0.55 cents and average cost of $0.45 cents is estimated.

The monthly fixed costs are:

Rent-SI .600

Wages - $4.000

Miscellaneous fixed expenses - $500

Marketing team observed that factory can safely increase their unit selling price to S0.60 cents. The new break even units for the sales based on new contribution margin will be:

Options:

A.

20,000 units

B.

60,000 units

C.

6,000 units

D.

40,000 units

Expert Solution
Questions # 56:

Develop a CPM method considering the below tasks and logical relationships. Use this information to answer the related questions.

Question # 56

What is the late finish date of activity 50?

Options:

A.

Day 47

B.

Day 38

C.

Day 28

D.

Day 37

Expert Solution
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