Which of the following types of projects would be least likely to use a Benefit/Cost ratio?

Which of the following is not a difficulty often involved in performing a B/C analysis for projects in the public sector?

Your company owns a parcel of land in a currently undeveloped part of the county.  As the neighboring city grows eastward, you believe there is a 50% chance of residential development, a 20% chance of industrial development, and a 30% chance of no development of the area surrounding the parcel of land.  If you build a roller rink and the land is developed residentially the roller rink will have a present worth of $2,000,000. A roller rink in an industrial area will have a present worth of $20,000 and in an undeveloped area a present COST of $3,000,000.  What is the expected monetary value (EV) of the roller rink?

I understand that I may not navigate away from the test to any other web page or program (no accessing excel) while I am taking this exam. ANY instance of an image other than in the exam during the test will result in a grade of ZERO on this exam.

A company has invested $40,000 with purchase of  a truck for delivery of its product.   With MACRS depreciation, what is the book value of the truck at the end of the second year?

Your company owns a parcel of land in a currently undeveloped part of the county.  As the neighboring city grows eastward, you believe there is a 50% chance of residential development, a 20% chance of industrial development, and a 30% chance of no development of the area surrounding the parcel of land.   If you build a gas station and the land is developed residentially the station will have a present worth of $250,000. A station in an industrial area will have a present worth of $200,000 and in an undeveloped area a present COST of $10,000. What is the expected monetary value (EV) of the gas station?

There are times when a company must act quickly to make a decision.  Selecting the first alternative which meets a minimum set of requirements is known as

A company is considering 6 projects as listed below for funding from a limited budget of $130K.  Based on these projects, what is the MARR?   Project First Cost ($K) Annual benefit ($K) Life IRR A 15 5.025 8 29% B 20 6.173 5 16% C 60 13.000 8 14% D 35 7.456 10 17% E 40 11.493 8 23% F 40 9.878 10 21%

An equipment costing $20,000 for assembling an electronics assembly is being considered by Sam Electronics in Cookeville, Tennessee. The equipment falls under three-year property class as per MACRS depreciation method. The equipment will have a salvage value of $5000 at the end of its life.  If the equipment is sold at the end of 3 years for $8000, determine the loss on sale, recaptured depreciation and/or capital gain using the MACRS depreciation method.

Smalls Electric Company is considering investing in new power-switching equipment.  The net present worth and probabilities for three probable outcomes are : Outcome: A B C Net PW 5.3K 4.0K 8.6K Probability of outcome 0.50 0.30 0.20   What is the risk, σPW, associated with the proposal?