2026 EXAM || MOST RECENT EXAM 2026-2027
ACTUAL COMPLETE REAL EXAM QUESTIONS
AND CORRECT ANSWERS (VERIFIED ANSWERS
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What is the most reliable determinant for taking on a project -
ANSWER -Net
Present Value
(NPV)
What is the Present Value Factor - ANSWER -Investment/Return
Simple Rate of Return - ANSWER -(Revenue-Costs)/initial
investment (Costs
include
depreciation)
What do you need to calculate to determine Payback Period -
ANSWER -Net
Cash Flow (Net
Income+Depreciation)
, Do you accept a project with a higher or lower IRR? - ANSWER -
Higher
Net Present Value - ANSWER -(((Sales-Annual
Costs)*PVF)+((Working
Capital+Salvage Value)*PVF))-((Equipment Costs+Work in
Capital)+(Overhaul
Equipment)*PVF))
How do you use Present Value Table? - ANSWER -Match up time
in years with
the discount rate to get
factor
Profitability Index - ANSWER -(Present Value-Upfront
Investment)/Upfront
Investment
Revised NPV - ANSWER -NPV+(cash inflows*PVF at cash
inflow)
Break Even Point - ANSWER -Fixed Costs/Contribution Margin
Break Even Point Change - ANSWER -((Fixed
Costs/(Product
A*%Sales)+(Product
B*%Sales))*%Sales