McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Computer Science Engineering (CSE) .
| 551. |
Find the capitalized equivalent worth for the project cash flow series at an interest rate of 10%. |
| A. | ce(10%) ⇓ = ⇓ $1,753 |
| B. | ce(10%) ⇓ = ⇓ $1,548 |
| C. | ce(10%) ⇓ = ⇓ $1,500 |
| D. | ce(10%) ⇓ = ⇓ $1,476 |
| Answer» B. ce(10%) ⇓ = ⇓ $1,548 | |
| 552. |
The following table contains a summary of how a project’s balance is expected to change over its 5 year service life at 10% interest.:Which of the following statements is incorrect? |
| A. | the net present worth of the project at 10% interest is $1,242 |
| B. | the required additional investment at the end of period 1 is $500 |
| C. | the net future of the project at 10% interest is $2,000 |
| D. | within 2 years, the company will recover all its investments and the cost of funds (interest) from the project |
| Answer» B. the required additional investment at the end of period 1 is $500 | |
| 553. |
Reconsider the project balance table calculated at 10% given in 5.9.:Which of the following statements is correct? |
| A. | the cash flow in period 3 is $240 |
| B. | the project is not profitable at i ⇓ = ⇓ 10%. |
| C. | the conventional payback period is 1.7 years |
| D. | the net present worth of the project is $2,000 |
| Answer» A. the cash flow in period 3 is $240 | |
| 554. |
A newly constructed water treatment facility cost $2 million. It is estimated that the facility will need renovating every 30 years at a cost of $1 million. Annual repairs and maintenance are estimated to be $100,000 per year. At an interest rate of 6%, determine the capitalized cost of the facility. |
| A. | 3579806 |
| B. | 3877482 |
| C. | 4301205 |
| D. | 3360343 |
| Answer» B. 3877482 | |
| 555. |
Consider the following two investment alternatives:Suppose that your firm needs either machine for only 2 years. The net proceeds from the sale of machine B are estimated to be $200. What should be the required net proceeds from the sale of machine A so that both machines could be considered economically indifferent at an interest rate of 10%? |
| A. | 850 |
| B. | 700 |
| C. | 750 |
| D. | 800 |
| Answer» C. 750 | |
| 556. |
Gene Research, Inc. just finished a 4-year R&D and clinical trials successfully and expects a quick approval from the Food and Drug
|
| A. | $524 million |
| B. | $105 million |
| C. | $420 million |
| D. | $494 million |
| Answer» A. $524 million | |
| 557. |
A manufacturing company is considering two mutually exclusive machines E1 and E2 with the following cash flow information:Which machine would you recommend if the company needs either machine for only 3 years? Assume a MARR of 12% |
| A. | project e1 |
| B. | indifferent |
| C. | cannot compare without knowing the year-end salvage values over their service lives |
| D. | project e2 |
| Answer» D. project e2 | |
| 558. |
You just purchased a pin inserting machine to relieve some bottleneck problems that have been created in manufacturing a PC board. The machine cost $56,000 and has an estimated service life of 5 years. At that time, the estimated salvage value would be $5,000. The machine is expected to operate 2,500 hours per year. The expected annual operating and maintenance cost would be $6,000. If your firm’s interest rate is 15%, what would be the machine cost per hour? |
| A. | 8.79 |
| B. | 7.85 |
| C. | 11.85 |
| D. | 5.89 |
| Answer» A. 8.79 | |
| 559. |
An asset with a first cost of $100,000 is depreciated over 5-year period. It is expected to have a $10,000 salvage value at the end of 5 years. Using the straight-line method, what is the book value at the end of year 2? |
| A. | 82000 |
| B. | 90000 |
| C. | 64000 |
| D. | 60000 |
| Answer» C. 64000 | |
| 560. |
The rate of tax that is leivable on STCG arising from transfer of Equity shares of a Company or units of an Equity oriented fund is |
| A. | 10% |
| B. | 15% |
| C. | 20% |
| D. | 30% |
| Answer» B. 15% | |
| 561. |
For an industrial undertaking fulfilling the conditions, additional depreciation in respect of a machinery costing Rs.10 lakh acquired and installed on October 3, 2005 is |
| A. | rs.75,000 |
| B. | rs.1,50,000 |
| C. | rs.1,00,000 |
| D. | none of the above |
| Answer» C. rs.1,00,000 | |
| 562. |
A.O.P should consist of : |
| A. | individual only |
| B. | persons other than individual only |
| C. | both the above |
| D. | none of the above |
| Answer» C. both the above | |
| 563. |
Body of individual should consist of : |
| A. | individual only |
| B. | persons other than individual only |
| C. | both the above |
| D. | none of the above |
| Answer» A. individual only | |
| 564. |
As per section 30, which expenditure incurred for a building used for the business or profession shall not be allowed as deduction? |
| A. | a. rent, rates and taxes |
| B. | b. insurance of building |
| C. | c. repairs of building |
| D. | d. capital expenditure |
| Answer» D. d. capital expenditure | |
| 565. |
If the Computer is purchased on 11th May, 2018 then at what rate depreciation will be provided on it? |
| A. | 60% |
| B. | 40% |
| C. | 30% |
| D. | 20% |
| Answer» B. 40% | |
| 566. |
What is the rate of depreciation charged on computer software? |
| A. | 40% |
| B. | 15% |
| C. | 60% |
| D. | 100% |
| Answer» B. 15% | |
| 567. |
Rate of depreciation chargeable on fully temporary wooden structure for the assessment year 2019-20 is |
| A. | 5% |
| B. | 10% |
| C. | 100% |
| D. | 40% |
| Answer» D. 40% | |
| 568. |
XYZ Ltd is engaged in production of textile articles. Opening WDV of the block of assets was Rs.` 15, 00,000. During the year, plant was acquired under this block on 15th June 2018 amounting to Rs.` 10, 00,000. One of the asset falling within the block was sold for Rs. ` 5, 50,000 on 14-01- 2019. Rate of depreciation of the block is 15%. Calculate the total amount of depreciation including additional depreciation available during the previous year for the block. C |
| A. | rs.` 2,92,500 |
| B. | rs.`4,92,500 |
| C. | rs.` 3,92,500 88 |
| D. | rs.` 3,52,500 |
| Answer» B. rs.`4,92,500 | |
| 569. |
Which of the following statements is correct? |
| A. | the reason why the u.s. congress allows business to use macrs depreciation as opposed to conventional methods is to reduce the business tax burden over the project life. |
| B. | under the declining balance depreciation system, it is always desirable to switch to straight line depreciation. |
| C. | when determining the cost basis for an asset’s depreciation, you must include all the costs that were incurred to keep the asset in operable condition. |
| D. | the main reason why a typical firm may use a straight line depreciation method in reporting an income to outside investors (as opposed to any other accelerated tax depreciation methods) is to abide by the accounting principle— that is to report the true cost of doing business |
| Answer» C. when determining the cost basis for an asset’s depreciation, you must include all the costs that were incurred to keep the asset in operable condition. | |
| 570. |
A company purchased an industrial fork-lift for $75,000 in year 0. The company expects to use it for the next 7 years after which it plans to sell it for $10,000. The estimated gross income and expenses excluding depreciation for the first year are given below. The fork-lift will be depreciated according to a 5-year MACRS.:Determine the average tax rate applicable in the first year of operation, using the current corporate tax rate schedule. |
| A. | 18.75% |
| B. | 17.31% |
| C. | 25% |
| D. | 15% |
| Answer» B. 17.31% | |
| 571. |
What effect would have on the break-even point and expected profit if there is an increase in fixed cost? |
| A. | (decrease, decrease) |
| B. | (increase, decrease) |
| C. | (increase, increase) |
| D. | (decrease, decrease) |
| Answer» B. (increase, decrease) | |
| 572. |
What effect would have on the break-even point and expected profit if there is an increase in labor cost? |
| A. | (decrease, decrease) |
| B. | (decrease, decrease) |
| C. | (increase, decrease) |
| D. | (increase, increase) |
| Answer» C. (increase, decrease) | |
| 573. |
What effect would have on the break-even point and expected profit if there is an increase in unit price? |
| A. | (increase, decrease) |
| B. | (decrease, decrease) |
| C. | (increase, increase) |
| D. | (decrease, increase) |
| Answer» B. (decrease, decrease) | |
| 574. |
What effect would have on the break-even point and expected profit if there is an increase in financing cost? |
| A. | (decrease, decrease) |
| B. | (increase, decrease) |
| C. | (increase, increase) |
| D. | (decrease, increase) |
| Answer» B. (increase, decrease) | |
| 575. |
What effect would have on the break-even point and expected profit if there is an increase in sales expense? |
| A. | (increase, increase) |
| B. | (decrease, decrease) |
| C. | (increase, decrease) |
| D. | (decrease, decrease) |
| Answer» C. (increase, decrease) | |
| 576. |
Which of the following statements is most correct? |
| A. | investment in working capital must be depreciated over the project life according to a straight-line method. |
| B. | if a project incurs an operating loss (a negative taxable income) during a typical tax year, the firm pays no income taxes during that year. |
| C. | whenever a project requires an investment in working capital, the profitability of the project will be affected negatively. |
| D. | all of the above |
| Answer» C. whenever a project requires an investment in working capital, the profitability of the project will be affected negatively. | |
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