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CM 2113 Test 1 Chao Wang Exam COMPLETE
NEWEST 100 QUESTIONS AND VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR
A contractor is investing $5,000 per year in savings certificates at an annual interest rate of
10% and plans to continue the investment program for 5 years, what will the value of the
contractor investment be at the end of 5 years?
Select one:
a. $62,890
b. $38,610
c. $30,525
d. $18,955
c. $30,525
A contractor plans to purchase a pickup truck in 10 years, how much should the contractor
invest at 5% interest today to have the $30,000 needed to purchase the truck at the end of 10
years?
Select one:
a. $15,000
b. $18,630
c. $19,350
d. $18,420
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d. $18,420
What the annual cost for a tractor is if a contractor is considering purchasing a used tractor
for $180,000 at 10% interest that she could use for 10 years and then sell for an estimated
salvage value of $10,000. Annual maintenance and repair costs for the used tractor are
estimated to be $15,000 per year.
Select one:
a. $43,710
b. $58,390
c. $41,970
d. $40,710
a. $43,710
Book Value is the _________ less the depreciable value.
Select one:
a. Initial cost
b. Aftermarket cost
c. Repair cost
d. Operating cost
a. Initial cost
Payments that differ in amount may be equal if made at different points in time is known as
____________.
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Select one:
a. Monetary values
b. Time value
c. Equivalence
d. Equality
c. Equivalence
The Time Value of money is based on the premise that money can generate _______ over a
period of time.
Select one:
a. Equipment
b. Interest
c. Capital
d. Budgets
b. Interest
Comparing a future cost of one alternative with the present worth cost of a second
alternative is valid and meaningful.
Select one:
True
False
False
3
CM 2113 Test 1 Chao Wang Exam COMPLETE
NEWEST 100 QUESTIONS AND VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR
A contractor is investing $5,000 per year in savings certificates at an annual interest rate of
10% and plans to continue the investment program for 5 years, what will the value of the
contractor investment be at the end of 5 years?
Select one:
a. $62,890
b. $38,610
c. $30,525
d. $18,955
c. $30,525
A contractor plans to purchase a pickup truck in 10 years, how much should the contractor
invest at 5% interest today to have the $30,000 needed to purchase the truck at the end of 10
years?
Select one:
a. $15,000
b. $18,630
c. $19,350
d. $18,420
1
, Page 2 of 27
d. $18,420
What the annual cost for a tractor is if a contractor is considering purchasing a used tractor
for $180,000 at 10% interest that she could use for 10 years and then sell for an estimated
salvage value of $10,000. Annual maintenance and repair costs for the used tractor are
estimated to be $15,000 per year.
Select one:
a. $43,710
b. $58,390
c. $41,970
d. $40,710
a. $43,710
Book Value is the _________ less the depreciable value.
Select one:
a. Initial cost
b. Aftermarket cost
c. Repair cost
d. Operating cost
a. Initial cost
Payments that differ in amount may be equal if made at different points in time is known as
____________.
2
, Page 3 of 27
Select one:
a. Monetary values
b. Time value
c. Equivalence
d. Equality
c. Equivalence
The Time Value of money is based on the premise that money can generate _______ over a
period of time.
Select one:
a. Equipment
b. Interest
c. Capital
d. Budgets
b. Interest
Comparing a future cost of one alternative with the present worth cost of a second
alternative is valid and meaningful.
Select one:
True
False
False
3
