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.
The following question requires your selection of CCC/CCE Scenario 17 (4.2.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.
Depreciation (in the United States) is calculated in accordance with which of the following?

• A.Generally Accepted Accounting Practices (GAAP)
• B.Accelerated Cost Recovery System (ACRS)
• C.The Federal IRS Reform Act (FIRSRA)
• D.Modified Accelerated Cost Recovery System (MACRS)

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NO: 37

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.
The entire pipe has been received, hangers have been installed, and all pipes are in place. None has been welded or flushed. What percent complete is this project?

• A.50%
• B.95%
• C.30%
• D.45%

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The written word is often more useful than the spoken. Guidelines for writing include:

• A.Use short sentences; use short words; avoid jargon and abbreviations; use complete sentences; stick to one idea per paragraph; have a beginning, middle and end; be accurate
• B.Organize the background information; state the problem list the options or alternatives; state the recommendation (s); conclude and summarize with why the recommendation is the best way to proceed
• C.Explain, report, describe, clarify, define and demonstrate
• D.Follow an outline; allow some time for "cooling" after compiling the draft before revising; when revising, allow plenty of time for several sessions

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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 following question requires your selection of CCC/CCE Scenario 26 (2.5.50.1.2) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.
What class of estimate is used for the preliminary design phase of a project?

• A.Class 2 - definitive estimate with +15%/-5% accuracy
• B.Class 4 - budget estimate with +30% / -15% accuracy
• C.Class 5 - order of magnitude estimate with +50% / -30% accuracy
• D.Class 1 - order of magnitude with +30% / -30% accuracy

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AACE International defines _____________as a technique of economic evaluation that sums over a given study period, the costs of initial investment, replacements, operations, and maintenance/repair; expressed in either present or annual value terms.

• A.Benefit/Cost ratio (B/C) method
• B.Risk analysis
• C.Life cycle costs method (LCC)
• D.Net present worth method

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