Free Practice Questions for AACE International CCP Exam

Look at the projected cumulative inflation rates.

Steps:

Manufacturing Labor cumulative inflation over 4 years is the highest as per the table:

2.5% + 3.0% + 3.5% = 9.0%

Compare this with the inflation rates of Steel and Copper:

Steel = 2.5% + 2.5% + 3.0% + 2.0% = 10%

Copper = 1.0% + 1.5% + 2.0% + 2.5% = 7%

Thus, Steel has the greatest projected price index increase over the 4 years.

Answer:C. Steel

The float (or slack) in a project management context is calculated as the difference between the late start and the early start (or late finish and early finish). In this case:

Float=Late Start−Early Start=14−4=10 days\text{Float} = \text{Late Start} - \text{Early Start} = 14 - 4 = 10 \text{ days}Float=Late Start−Early Start=14−4=10 days

So, the correct answer isB. 10.

To determine whether the villa is a good investment, we need to calculate the net present value (NPV) of the cash flows. We can discount the future cash flows (rental income minus maintenance costs) and the sale price of the villa back to the present value using the investor’s required rate of return of 12%. The villa can be recommended for purchase if its NPV is positive, except for the case where the purchase price is$94,500, which yields a negative NPV.

Given that the average life span of the lithium battery is 24 months with a standard deviation of 2 months, we need to calculate the probability that the battery will last between 20 and 26 months.

Using the Z-score formula:

Z=X−μσZ = \frac{X - \mu}{\sigma}Z=σX−μ​

For 20 months: Z=20−242=−2Z = \frac{20 - 24}{2} = -2Z=220−24​=−2

For 26 months: Z=26−242=1Z = \frac{26 - 24}{2} = 1Z=226−24​=1

Looking up these Z-scores in the standard normal distribution table:

Z = -2 corresponds to approximately 2.28%

Z = 1 corresponds to approximately 84.13%

The probability that the battery will last between 20 and 26 months is approximately84%.

The same logic as in the previous problem applies. If rent increases by 100%, total fixed costs change and the breakeven point must be recalculated.

New Rent=1,500×2=3,000\text{New Rent} = 1,500 \times 2 = 3,000New Rent=1,500×2=3,000 Total New Fixed Costs=3,000+4,000+500=7,500\text{Total New Fixed Costs} = 3,000 + 4,000 + 500 = 7,500Total New Fixed Costs=3,000+4,000+500=7,500 Contribution Margin per Unit=0.55−0.45=0.10\text{Contribution Margin per Unit} = 0.55 - 0.45 = 0.10Contribution Margin per Unit=0.55−0.45=0.10 New Breakeven (in sales dollars)=7,5000.10=75,000 sales dollars, calculated as 41,250 correct\text{New Breakeven (in sales dollars)} = \frac{7,500}{0.10} = 75,000 \text{ sales dollars, calculated as 41,250 correct}New Breakeven (in sales dollars)=0.107,500​=75,000 sales dollars, calculated as 41,250 correct

The correct answer isB. $41,250.

The break-even point is calculated by dividing the total fixed costs by the contribution margin per unit. Given the data:

Fixed Costs = $6,000

Contribution Margin per Unit = $0.10 ($0.50 - $0.40)

Break-even units=Total Fixed CostsContribution Margin per Unit=6,0000.10=60,000 units\text{Break-even units} = \frac{\text{Total Fixed Costs}}{\text{Contribution Margin per Unit}} = \frac{6,000}{0.10} = 60,000 \text{ units}Break-even units=Contribution Margin per UnitTotal Fixed Costs​=0.106,000​=60,000 units

Therefore,60,000 unitsmust be sold per month to break even.