Spring Sale 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: save70

It adjusts the relevant cash flows of a project to reflect the time value of money. The discount rate used is always the company's weighted average cost of capital.

It adjusts the relevant cash flows of a project to reflect the time value of money. The discount rate used reflects the risk of the project.

It adjusts the relevant profits of a project to reflect the time value of money. The discount rate used reflects the risk of the project.

It adjusts the relevant cash flows of a project after the deduction of depreciation charges to reflect the time value of money. The discount rate used is always the company's weighted average cost of capital.

Buy Now

Question 2

Company TTM has the opportunity to invest $60,000 in a project. The project is anticipated to produce annual returns of $12,500 each year for 8 years. The cost of capital is 12%.

What is the net present value of the project? Give your answer to the nearest whole number.

Options:

Question 3

An investment centre manager is considering the purchase of a new machine. If purchased, the new machine would replace an existing one that is used to manufacture one of the investment centre's existing products.

The new machine would incur $800 per month additional running costs; this includes $300 per month of additional depreciation.

The new machine would save on direct labor time. This means that the fixed production overhead absorbed by the product on the basis of direct labor hours would reduce by $100 per month.

What is the total cost of the above that is relevant to the decision to purchase the machine?

Options:

$500; only the additional running costs, excluding depreciation, are relevant.

$700; all of the additional running costs and the reduction in absorbed overhead are relevant.

$400; only the reduction in absorbed overhead and the additional running costs, excluding depreciation, are relevant.

$800; all of the additional running costs are relevant, but the reduction in absorbed overhead is not relevant.

Get Free P2 Questions and Answers

Spring Sale 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: save70

P2 Exam Dumps : Advanced Management Accounting

CIMA Related Exams

Verified By IT Certified Experts

CertsTopics.com Certified Safe Files

Up-To-Date Exam Study Material

99.5% High Success Pass Rate

100% Accurate Answers

Instant Downloads

Exam Questions And Answers PDF

Try Demo Before You Buy

Advanced Management Accounting Questions and Answers

Options:

Answer:

Options:

Answer:

Options:

Answer:

CompTIA

Fortinet

Microsoft

Salesforce