TABLE OF CONTENTS AFTERNOON SAMPLE EXAMINATION
Instructions for afternoon Session
You have four hours to work on the afternoon session. Do not write in this handbook.
Answer all forty questions for a total of forty answers. There is no penalty for guessing.
Work rapidly and use your time effectively. If you do not know the correct answer, skip it and return to it later.
Some problems are presented in both metric and English units. Solve either problem.
Mark your answer sheet carefully. Fill in the answer space completely. No marks on the workbook will be evaluated. Multiple answers receive no credit. If you make a mistake, erase completely.
Work all 40 problems in four hours.
MB1 to MB4: A proposed manufacturing plant requires an initial fixed capital investment of $1.1 Million, and $120,000 as working capital. Estimated annual income will be $960,000. Annual expenses including depreciation are $620,000. A minimum of 15% return before taxes is required for the investment to be worthwhile. Income tax is 40% of gross profits before taxes.
| 1. | Annual percent return before income taxes is nearer to
|
|
| 2. | Annual percent return on the initial investment after income taxes is near to
|
|
| 3. | Annual % return on the initial investment before income taxes based on capital recovery with minimum profit is nearer to
|
|
| 4. | The annual percent return on the average investment before income taxes assuming straight... |
