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Question 66/75
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.
Which of the following interest rates disregards the effects of compounding periods that occur more frequent than annually?
Answer the question using a straight line depreciation and a 10% interest rate.
Which of the following interest rates disregards the effects of compounding periods that occur more frequent than annually?
Correct Answer: D
The Nominal interest rate is the rate of interest before adjusting for compounding within the year. It disregards the effects of compounding periods that occur more frequently than annually. For instance, a nominal rate of 12% compounded monthly would still be referred to as 12%, without taking into account the fact that the effective annual rate would be higher due to monthly compounding. The other options, such as continuous compounding, simple interest, and minimum attractive rate of return (MARR), do account for compounding or are specific types of interest. Therefore, the correct answer is D. Nominal interest rate.
- Question List (75q)
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- Question 6: What is a basic element of work or a task that must be perfo...
- Question 7: A used concrete pumping truck can be purchased for $125,000....
- Question 8: Budgeted cost of work scheduled is all of the following exce...
- Question 9: Which of the following is NOT an aspect of quality managemen...
- Question 10: An agricultural corporation that paid 53% in income tax want...
- Question 11: An agricultural corporation that paid 53% in income tax want...
- Question 12: The latest allowable end time minus the earliest allowable e...
- Question 13: An agricultural corporation that paid 53% in income tax want...
- Question 14: A used concrete pumping truck can be purchased for $125,000....
- Question 15: Which of the following are used for profitability analysis i...
- Question 16: A major theme park is expanding the existing facility over a...
- Question 17: The following question requires your selection of CCC/CCE Sc...
- Question 18: When a person hears the words being said to him/her, but doe...
- Question 19: A major theme park is expanding the existing facility over a...
- Question 20: Which of the following is used for measuring productivity lo...
- Question 21: The following question requires your selection of CCC/CCE Sc...
- Question 22: The following question requires your selection of CCC/CCE Sc...
- Question 23: Money is value. Having money when you need it is very import...
- Question 24: The goal of listening is to:
- Question 25: A used concrete pumping truck can be purchased for $125,000....
- Question 26: An agricultural corporation that paid 53% in income tax want...
- Question 27: A major theme park is expanding the existing facility over a...
- Question 28: The following question requires your selection of CCC/CCE Sc...
- Question 29: If two alternatives with different useful lives are to be co...
- Question 30: An agricultural corporation that paid 53% in income tax want...
- Question 31: How can the quality of a cost/capacity factor estimate be im...
- Question 32: Which of the following best describes the three key particip...
- Question 33: Two of the most important things to know when planning a spe...
- Question 34: An American company plans to acquire a new press machine fro...
- Question 35: The following question requires your selection of CCC/CCE Sc...
- Question 36: The following question requires your selection of CCC/CCE Sc...
- Question 37: Which of the following is NOT a part of the five (5) phases ...
- Question 38: Which of the following is NOT an advantage specific to a cos...
- Question 39: An American company plans to acquire a new press machine fro...
- Question 40: SCENARIO: A can manufacturing company requested you to provi...
- Question 41: Money is value. Having money when you need it is very import...
- Question 42: You are reporting the following Earned Value Analysis inform...
- Question 43: A used concrete pumping truck can be purchased for $125,000....
- Question 44: Which of the following is NOT a type of float?...
- Question 45: A major theme park is expanding the existing facility over a...
- Question 46: The following question requires your selection of CCC/CCE Sc...
- Question 47: An agricultural corporation that paid 53% in income tax want...
- Question 48: A used concrete pumping truck can be purchased for $125,000....
- Question 49: An American company plans to acquire a new press machine fro...
- Question 50: A small hole construction project has a baseline budget of $...
- Question 51: A used concrete pumping truck can be purchased for $125,000....
- Question 52: ______________can be defined as the determination of that co...
- Question 53: When the project plan is implemented:...
- Question 54: The following question requires your selection of CCC/CCE Sc...
- Question 55: In the application of the benefit/cost method of analysis, w...
- Question 56: When measuring progress using tasks that lack readily defina...
- Question 57: Which statement best describes the constructability review f...
- Question 58: A major theme park is expanding the existing facility over a...
- Question 59: A major theme park is expanding the existing facility over a...
- Question 60: As the leas cost engineer for the XYZ Services Company, you ...
- Question 61: A small hole construction project has a baseline budget of $...
- Question 62: A major theme park is expanding the existing facility over a...
- Question 63: A used concrete pumping truck can be purchased for $125,000....
- Question 64: A major theme park is expanding the existing facility over a...
- Question 65: ____________is defined as the earned work hours or dollars f...
- Question 66: An agricultural corporation that paid 53% in income tax want...
- Question 67: The following question requires your selection of CCC/CCE Sc...
- Question 68: Some of the principles of good communication are:...
- Question 69: A major theme park is expanding the existing facility over a...
- Question 70: Money is value. Having money when you need it is very import...
- Question 71: A used concrete pumping truck can be purchased for $125,000....
- Question 72: A major theme park is expanding the existing facility over a...
- Question 73: A major theme park is expanding the existing facility over a...
- Question 74: A major theme park is expanding the existing facility over a...
- Question 75: A used concrete pumping truck can be purchased for $125,000....
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