Question 1

If the level of project definition is only 8%, what class of

estimation you can prepare?

Select one:
a. Class 5
b. Class 4
c. Class 3
d. Class 2

The correct answer is: Class 4

Question 2

If you want to prepare estimation for bidding purpose, what

class of estimate would you suggest?

Select one:
a. Class 3 - Budget Estimate
b. Class 5 - ROM
c. Class 2 - Definitive Estimate
d. Class 4 - Budget Estimate

The correct answer is: Class 2 - Definitive Estimate

Question 3

Which estimate requires least amount of effort to prepare?

Select one:
a. ROM
b. Definitive Estimate
c. Budget Estimate
d. Control Estimate

The correct answer is: ROM

Question 4
An accuracy range of -5% to + 15% for a process industry falls
under which class of estimate?

Select one:
a. Class 1 - Definitive Estimate
b. Class 2 - Definitive Estimate
c. Class 3 - Budget Estimate
d. Class 4 - ROM Estimate

The correct answer is: Class 1 - Definitive Estimate

Question 5
The Lagoon Park Project was to grade and pave a sidewalk
around a pond in the community park. The sidewalk of Lagoon
Park was 1,048 feet by 6 feet, used a textured surface, had
some curves around trees, and cost USD 75,287 to complete.
The current project, King Park, will have a similar surface and
will cover 4,500 feet by 6 feet. What will be cost of King Park,
based on physical dimension estimation technique?

Select one:
a. USD 323,190
b. USD 310,233
c. USD 295,000
d. USD 398,000

The correct answer is: USD 323,190

Question 6

An estimate prepared using Capacity factor method falls

under what AACEI Estimation class?

Select one:
a. Class 5
b. Class 4
c. Class 3
d. Order of Magnitude / Ball Park

The correct answer is: Class 5

Question 7

BAC =200

ACWP =120

BCWP =80

CPI =0.666

Assuming that current variances are typical of future

variances, the estimate at completion (EAC) is:

Select one:
a. 120
b. 160
c. 200
d. 240

The correct answer is: 240

Question 8
Answer the following questions using the table below. As per
the plan Work Package 1 to 6 should have been 100%
completed.

Work Package ACWP Progress BCWS

1 17 100% 14
2 14 60% 16
3 5 55% 14
4 20 100% 18
5 7 50% 12
6 12 80% 18
7 - - 12
8 - - 18
9 - - 15
10 - - 10

Q) Find BAC

a. 147
b. 157
c. 75
d. 92

The correct answer is: 147

Question 9
Answer the following questions using the table below. As per
the plan Work Package 1 to 6 should have been 100%
completed.

Work Package ACWP Progress BCWS

1 17 100% 14
2 14 60% 16
3 5 55% 14
4 20 100% 18
5 7 50% 12
6 12 80% 18
7 - - 12
8 - - 18
9 - - 15
10 - - 10

Q) Find BCWS

a. 147
b. 157
c. 75
d. 92

The correct answer is: 92

Question 10
Answer the following questions using the table below. As per
the plan Work Package 1 to 6 should have been 100%
completed.

Work Package ACWP Progress BCWS

1 17 100% 14
2 14 60% 16
3 5 55% 14
4 20 100% 18
5 7 50% 12
6 12 80% 18
7 - - 12
8 - - 18
9 - - 15
10 - - 10

Q) Find ACWP

a. 147
b. 157
c. 75
d. 92

The correct answer is: 75

Question 11
Answer the following questions using the table below. As per
the plan Work Package 1 to 6 should have been 100%
completed.

Work Package ACWP Progress BCWS

1 17 100% 14
2 14 60% 16
3 5 55% 14
4 20 100% 18
5 7 50% 12
6 12 80% 18
7 - - 12
8 - - 18
9 - - 15
10 - - 10

Q) Find BCWP

a. 69.7
b. 15.7
c. 75
d. 92

The correct answer is: 69.7

Question 12
Answer the following questions using the table below. As per
the plan Work Package 1 to 6 should have been 100%
completed.

Work Package ACWP Progress BCWS

1 17 100% 14
2 14 60% 16
3 5 55% 14
4 20 100% 18
5 7 50% 12
6 12 80% 18
7 - - 12
8 - - 18
9 - - 15
10 - - 10

Q) Find SV

a. -5.3
b. -22.3
c. 0.75
d. -12

The correct answer is: -22.3

Question 13
Answer the following questions using the table below. As per
the plan Work Package 1 to 6 should have been 100%
completed.

Work Package ACWP Progress BCWS

1 17 100% 14
2 14 60% 16
3 5 55% 14
4 20 100% 18
5 7 50% 12
6 12 80% 18
7 - - 12
8 - - 18
9 - - 15
10 - - 10

Q) Find CV

a. -5.3
b. -22.3
c. 0.72
d. 5.3

The correct answer is: -5.3

Question 14
Answer the following questions using the table below. As per
the plan Work Package 1 to 6 should have been 100%
completed.

Work Package ACWP Progress BCWS

1 17 100% 14
2 14 60% 16
3 5 55% 14
4 20 100% 18
5 7 50% 12
6 12 80% 18
7 - - 12
8 - - 18
9 - - 15
10 - - 10

Q) Find SPI

a. .758
b. .609
c. .23
d. 1.75

The correct answer is: .758

Question 15
Given:

BAC =200

ACWP =120

BCWP =80

CPI =0.666

Assuming that current variances are typical of future

variances, the estimate at completion (EAC) is:

Select one:
a. 220
b. 260
c. 300
d. 320

The correct answer is: 300

Question 16

Your schedule analysis has shown that your project has a high
likelihood of experiencing a schedule overrun. You know this
because the cumulative BCWP is much:

Select one:
a. Higher than the cumulative ACWP.
b. Higher than the cumulative BCWS.
c. Lower than the cumulative BCWS.
d. Lower than the cumulative CPI.

The correct answer is: Lower than the cumulative BCWS.

Question 17

In the earned value technique, cost variance is computed as:

Select one:
a. BCWP minus BCWS.
b. BCWP minus ACWP.
c. ACWP minus BCWP.
d. BCWS minus BCWP.

The correct answer is: BCWP minus ACWP.

Question 18

Item BCWS ACWP BCWP

1 10,000 11,000 10,000
2 9,000 8,000 7,000
3 8,000 8,000 8,000
4 7,000 7,000 5,000

Q) Which item is MOST over budget?

Select one:
a. Item 1
b. Item 2
c. Item 3
d. Item 4

The correct answer is: Item 4

Question 19
The estimated current price for a unit of machine is USD 1.5 Million. The machine
has the following commodities and it share of total cost is:

Commodity Share
Iron 30%
Copper 30%
Zinc 20% The following are the escalation rate
Labor 20% for the above commodity for the
next 5 years:
Escalation Rate
Year 1 Year 2 Year 3 Year 4 Year 5
Commodity Index
Iron 3.7 13% 11% 10% 8% 14%
Copper 2.4 11% 10% 8% 11% 10%
Zinc 1.8 5% 9% 4% 11% 10%
Labor 8.9 3% 10% 8% 4% 12%

What will be the cost of this machine at the end of year 4?

Select one:
a. 2.1 Million
b. 1.9 Million
c. 2.0 Million
d. 2.2 Million

The correct answer is: 2.1 Million

Question 20

The estimated current price for a unit of machine is USD 1.5 Million. The
machine has the following commodities and it share of total cost is:

Commodity Share
Iron 30 %
Copper 30%
Zinc 20% The following are the escalation
Labor 20% rate for the above commodity for
the next 5 years:
Escalation Rate
Year 1 Year 2 Year 3 Year 4 Year 5
Commodity Index
Iron 3.7 13% 11% 10% 8% 14%
Copper 2.4 11% 10% 8% 11% 10%
Zinc 1.8 5% 9% 4% 11% 10%
Labor 8.9 3% 10% 8% 4% 12%

After 5 Years which commodity pose the highest cost increase (in
percentage) over today's commodity price?

Select one:
a. Iron
b. Copper
c. Zinc
d. Labor

The correct answer is: Iron

Question 21

The estimated current price for a unit of machine is USD 1.5 Million. The
machine has the following commodities and it share of total cost is:

Commodity Share
Iron 30 %
Copper 30%
Zinc 20% The following are the escalation
Labor 20% rate for the above commodity for
the next 5 years:
Escalation Rate
Year 1 Year 2 Year 3 Year 4 Year 5
Commodity Index
Iron 3.7 13% 11% 10% 8% 14%
Copper 2.4 11% 10% 8% 11% 10%
Zinc 1.8 5% 9% 4% 11% 10%
Labor 8.9 3% 10% 8% 4% 12%

What is the cost of Zinc for the machine today?

Select one:
a. 450000
b. 300000
c. 320000
d. 400000

The correct answer is: 300000

Question 22

The estimated current price for a unit of machine is USD 1.5 Million. The
machine has the following commodities and it share of total cost is:

Commodity Share
Iron 30 %
Copper 30%
Zinc 20% The following are the escalation
Labor 20% rate for the above commodity for
the next 5 years:
Escalation Rate
Year 1 Year 2 Year 3 Year 4 Year 5
Commodity Index
Iron 3.7 13% 11% 10% 8% 14%
Copper 2.4 11% 10% 8% 11% 10%
Zinc 1.8 5% 9% 4% 11% 10%
Labor 8.9 3% 10% 8% 4% 12%

At the end of year 3, what is the projected cost of the machine?

Select one:
a. 1.9 Million
b. 2.0 Million
c. 1.8 Million
d. 1.7 Million

The correct answer is: 1.9 Million

Question 23

The estimated current price for a unit of machine is USD 1.5 Million. The
machine has the following commodities and it share of total cost is:

Commodity Share
Iron 30 %
Copper 30%
Zinc 20% The following are the escalation
Labor 20% rate for the above commodity for
the next 5 years:
Escalation Rate
Year 1 Year 2 Year 3 Year 4 Year 5
Commodity Index
Iron 3.7 13% 11% 10% 8% 14%
Copper 2.4 11% 10% 8% 11% 10%
Zinc 1.8 5% 9% 4% 11% 10%
Labor 8.9 3% 10% 8% 4% 12%

If the iron cost USD 12000 per ton at the end of year 4, what is the price of
iron at the end of year 5?

Select one:
a. 13680
b. 12680
c. 14680
d. 11680

The correct answer is: 13680

Question 24

The estimated current price for a unit of machine is USD 1.5 Million. The
machine has the following commodities and it share of total cost is:

Commodity Share
Iron 30 %
Copper 30%
Zinc 20% The following are the escalation
Labor 20% rate for the above commodity for
the next 5 years:
Escalation Rate
Year 1 Year 2 Year 3 Year 4 Year 5
Commodity Index
Iron 3.7 13% 11% 10% 8% 14%
Copper 2.4 11% 10% 8% 11% 10%
Zinc 1.8 5% 9% 4% 11% 10%
Labor 8.9 3% 10% 8% 4% 12%

At the end of 40 months, what will be escalated price of Labor?

Select one:
a. 382000
b. 367000
c. 339900
d. 11680

The correct answer is: 382000

Question 25
The estimated current price for a unit of machine is USD 1.5 Million. The
machine has the following commodities and it share of total cost is:

Commodity Share
Iron 30 %
Copper 30%
Zinc 20% The following are the escalation
Labor 20% rate for the above commodity for
the next 5 years:
Escalation Rate
Year 1 Year 2 Year 3 Year 4 Year 5
Commodity Index
Iron 3.7 13% 11% 10% 8% 14%
Copper 2.4 11% 10% 8% 11% 10%
Zinc 1.8 5% 9% 4% 11% 10%
Labor 8.9 3% 10% 8% 4% 12%

What is the index value of copper at the end of year 1?

Select one:
a. 2.664
b. 2.554
c. 2.332
d. 2.412

The correct answer is: 2.664

Question 26
scenario - CEC-A2

You have recently completed a 750 MW power plant with the

total cost of AED 270 Million. You have been assigned to
prepare a ball park estimate for new 870 MW power plant.
Historical information suggests you to use 0.60 Exponent.

Based on this scenario, answer the following questions:

What is the most relevant technique to use for this scenario?

Select one:
a. Physical Dimension Method
b. Ratio or Factor Methods
c. Parametric Method
d. Capacity Factor Method

The correct answer is: Capacity Factor Method

Question 27

scenario - CEC-A2

You have recently completed a 750 MW power plant with the

total cost of AED 270 Million. You have been assigned to
prepare a ball park estimate for new 870 MW power plant.
Historical information suggests you to use 0.60 Exponent.

Based on this scenario, answer the following questions:

What is the equation for Capacity Factor Method?

Select one:
a. $B = ($A) (CapB / CapA)e
b. $A = ($B) (CapB / CapA)e
c. $A = ($B) (CapB / CapA)e
d. $B = ($A) (CapA / CapB)e

The correct answer is: $B = ($A) (CapB / CapA)e

Question 28

scenario - CEC-A2

You have recently completed a 750 MW power plant with the

total cost of AED 270 Million. You have been assigned to
prepare a ball park estimate for new 870 MW power plant.
Historical information suggests you to use 0.60 Exponent.

Based on this scenario, answer the following questions:

What is the exponent range typically used for Capacity Factor

Method?

Select one:
a. 0.4 to 0.89
b. 0.5 to 0.85
c. 0.6 to 0.78
d. 0.1 to 1.0

The correct answer is: 0.5 to 0.85

Question 29

scenario - CEC-A2

You have recently completed a 750 MW power plant with the

total cost of AED 270 Million. You have been assigned to
prepare a ball park estimate for new 870 MW power plant.
Historical information suggests you to use 0.60 Exponent.

Based on this scenario, answer the following questions:

As per AACE International classification, this estimation will

provide you with what class of accuracy?

Select one:
a. Class 5
b. Class 4
c. Class 3
d. Class 2

The correct answer is: Class 5

Question 30

scenario - CEC-A2

You have recently completed a 750 MW power plant with the

total cost of AED 270 Million. You have been assigned to
prepare a ball park estimate for new 870 MW power plant.
Historical information suggests you to use 0.60 Exponent.

Based on this scenario, answer the following questions:

What will be new plant cost based on e=.70?

Select one:
a. 300 Million
b. 290 Million
c. 301 Million
d. 333 Million

The correct answer is: 300 Million

Question 31

scenario - CEC-A2

You have recently completed a 750 MW power plant with the

total cost of AED 270 Million. You have been assigned to
prepare a ball park estimate for new 870 MW power plant.
Historical information suggests you to use 0.60 Exponent.

Based on this scenario, answer the following questions:

If the new project doesn't have some scope worth 50 Million,

which you have completed in the last project, what will be
new project cost?

Select one:
a. 240 Million
b. 244 Million
c. 248 Million
d. 241 Million

The correct answer is: 240 Million

Question 32
scenario - CEC-A2

You have recently completed a 750 MW power plant with the

total cost of AED 270 Million. You have been assigned to
prepare a ball park estimate for new 870 MW power plant.
Historical information suggests you to use 0.60 Exponent.

Based on this scenario, answer the following questions:

If the exponent / proration factor increases, what will be the

effect on new project cost?

Select one:
a. There will be a further increase in new project cost
b. There will be a further decrease in new project cost
c. There will be no effect on new project cost
d. None of the above

The correct answer is: There will be a further increase in new

project cost
Question 33
scenario - CEC-A2

An engineering company was awarded a project with an

original budget of 160,000 hours, valued at $15,000,000. The
Client has asked the project to prepare an in-depth analysis of
the project performance and make a formal presentation.

Use the following data to prepare the reports and presentation

as requested by the Client.

• Planned hours 65,000

• Actual hours spent to date 73,000
• % complete 40%

Based on this scenario, answer the following questions:

What many hours have the project earned?

Select one:
a. 64,000
b. 73,000
c. 6,400
d. 5,900

The correct answer is: 64,000

Question 34
scenario - CEC-A3

An engineering company was awarded a project with an

original budget of 160,000 hours, valued at $15,000,000. The
Client has asked the project to prepare an in-depth analysis of
the project performance and make a formal presentation.

Use the following data to prepare the reports and presentation

as requested by the Client.

• Planned hours 65,000

• Actual hours spent to date 73,000
• % complete 40%

Based on this scenario, answer the following questions:

What is the cost variance (CV)?

Select one:
a. - 9,000
b. + 8,000
c. - 12,000
d. +7,000

The correct answer is: - 9,000

Question 35
scenario - CEC-A3

An engineering company was awarded a project with an

original budget of 160,000 hours, valued at $15,000,000. The
Client has asked the project to prepare an in-depth analysis of
the project performance and make a formal presentation.

Use the following data to prepare the reports and presentation

as requested by the Client.

• Planned hours 65,000

• Actual hours spent to date 73,000
• % complete 40%

Based on this scenario, answer the following questions:

What is the schedule variance (SV)?

Select one:
a. - 1,000
b. +1,000
c. - 9,000
d. + 10,000

The correct answer is: - 1,000

Question 36
scenario - CEC-A3

An engineering company was awarded a project with an

original budget of 160,000 hours, valued at $15,000,000. The
Client has asked the project to prepare an in-depth analysis of
the project performance and make a formal presentation.

Use the following data to prepare the reports and presentation

as requested by the Client.

• Planned hours 65,000

• Actual hours spent to date 73,000
• % complete 40%

Based on this scenario, answer the following questions:

What is the cost performance index (CPI)?

Select one:
a. .88
b. 1.14
c. .98
d. .89

The correct answer is: .88

Question 37
scenario - CEC-A3

An engineering company was awarded a project with an

original budget of 160,000 hours, valued at $15,000,000. The
Client has asked the project to prepare an in-depth analysis of
the project performance and make a formal presentation.

Use the following data to prepare the reports and presentation

as requested by the Client.

• Planned hours 65,000

• Actual hours spent to date 73,000
• % complete 40%
• Based on this scenario, answer the following questions:

What is the schedule performance index (SPI)?

Select one:
a. .98
b. 1.01
c. .89
d. 1.25

The correct answer is: .98

Question 38
scenario - CEC-A3

An engineering company was awarded a project with an

original budget of 160,000 hours, valued at $15,000,000. The
Client has asked the project to prepare an in-depth analysis of
the project performance and make a formal presentation.

Use the following data to prepare the reports and presentation

as requested by the Client.

• Planned hours 65,000

• Actual hours spent to date 73,000
• % complete 40%

Based on this scenario, answer the following questions:

What are the forecast work hours to complete (EAC)?

Select one:
a. 181,818
b. 169,000
c. 160,000
d. 183,890

The correct answer is: 181,818

Question 39
scenario - CEC-A3

An engineering company was awarded a project with an

original budget of 160,000 hours, valued at $15,000,000. The
Client has asked the project to prepare an in-depth analysis of
the project performance and make a formal presentation.

Use the following data to prepare the reports and presentation

as requested by the Client.

• Planned hours 65,000

• Actual hours spent to date 73,000
• % complete 40%

Based on this scenario, answer the following questions:

What the status of the project?

Select one:
a. Cost favorable, Schedule unfavorable
b. Cost favorable, Schedule favorable
c. Schedule unfavorable, Cost unfavorable
d. Schedule unfavorable, Cost favorable

The correct answer is: Schedule unfavorable, Cost unfavorable

Question 40
A student deposits $1000 in a savings account that pays
interest at the rate of 6% per year. How much money will the
student have after one year?
Select one:
a. $1600
b. $1200
c. $1060
d. $1016

The correct answer is: $1060

Question 41
Mr. Sharma will receive $ 25000 after 10 years, what is the
present worth of $25000. Assume interest rate of 6.5% per year.

Select one:
a. $ 26,564
b. $ 13,318
c. $ 15,264
d. $ 11,568

The correct answer is: $ 13,318

Question 42
How long it will take to double the money if the bank gives
interest rate of 10% per year, compounded annually

Select one:
a. 7.2 years
b. 6.5 years
c. 8 years
d. 6 years

The correct answer is: 7.2 years

Question 43
If the bank interest rate is 8% per year, how much an individual
will have to deposit for a 5 years in order to obtain a net of $
50,000 after paying $ 50 as the early withdrawal fees?

Select one:
a. $ 28,567
b. $ 34,030
c. $ 31,077
d. $ 25,908

The correct answer is: $ 34,030

Question 44

Mr. Nasir deposits $ 1000 in a savings account at the end of

each year, starting now, for next 10 years. Bank pays 12%
interest per year. How much money Nasir will get at the end of
10 Year period.

Select one:
a. $ 16,980
b. $ 15,235
c. $ 18,987
d. $ 17,549

The correct answer is: $ 17,549

Question 45

Mr. John is planning his retirement. He is planning to invest in a

bank scheme which is offering 12% per year interest rate. How
much money he should invest now, if he plans to withdraw $
12,000 per year for a period of 20 years.

Select one:
a. $ 81,678
b. $ 84,561
c. $ 75,892
d. $ 89,628

The correct answer is: $ 89,628

Question 46

Ms. Kent invests $ 8000 in an account that pays 8.5% interest

per year, compounded quarterly. What is amount of money
she will have after 4 years?

Select one:
a. $ 10,800.20
b. $ 15,000.10
c. $ 16,178.90
d. $ 11,199.60

The correct answer is: $ 11,199.60

Question 47

How much money must initially be deposited in a savings

account paying 12% per year, compounded annually, to
provide for ten annual withdrawals that start at $6000 and
decrease by $500 each year?

Select one:
a. $ 24,980
b. $ 23,773
c. $ 28,127
d. $ 56,190

The correct answer is: $ 23,773

Question 48

Suppose that a man lends $1000 for four years at 12% per year
simple interest. At the end of the four years, he invests the
entire amount which he then has for 10 years at 8% interest per
year, compounded annually. How much money will he have
at the end of the 14-year period?
Select one:
a. $2133
b. $3500
c. $3195
d. $2890

The correct answer is: $3195

Question 49

Suppose that a person deposits $500 in a savings account at

the end of each year, starting now, for the next 12 years. If the
bank pays 8% per year, compounded annually, how much
money will accumulate by the end of the 12-year period?

Select one:
a. $9488
b. $8448
c. $8888
d. $6000

The correct answer is: $9488

Question 50

A machine that cost $30000 new has an 8-year life and a

salvage value equal to 10% of its original cost. The annual
maintenance cost of this machine is $1000 the first year, with
an increase of $200 each year hereafter; the annual operating
cost is $800 per year. Determine the EUAC of this machine if
the interest rate is 10% per year, compounded annually.

Select one:
a. $6791
b. $8920
c. $5980
d. $7761

The correct answer is: $7761

Question 51

Economic Analysis should generally made

Select one:
a. After-tax basis
b. After-tax basis + add back depreciation (if any)
c. After-tax basis without adding back the depreciation
d. After-tax or Before-tax will give the same result

The correct answer is: After-tax basis + add back depreciation

(if any)
Question 52

Mr. Paul borrows $ 5000 from his neighbor to buy a Laptop. His
neighbor agrees to charge him simple interest at the rate of 7%
per year. If Paul repays the loan after 4 years, how much he
will have to pay?

Select one:
a. $ 6,300
b. $ 5,500
c. $ 6,400
d. $ 6,000

The correct answer is: $ 6,400

Question 53

Scenario No. EA-A1

A computer system can be purchased for $18000. The

operating costs will be $10000 per year, and the useful life is
expected to be 5 years, with $5000 salvage value that time.
The present annual sales volume should increase by $16000 as
a result of acquiring the computer system. The company's tax
rate is 50%. Using straight-line depreciation technique with 10%
MARR.

Answer the below question, based on the above scenario:

What is the Net Present Worth of this investment?

Select one:
a. $7405
b. $6405
c. $1405
d. $9120

The correct answer is: $1405

Question 54
Scenario No. EA-A1

A computer system can be purchased for $18000. The

operating costs will be $10000 per year, and the useful life is
expected to be 5 years, with $5000 salvage value that time.
The present annual sales volume should increase by $16000 as
a result of acquiring the computer system. The company's tax
rate is 50%. Using straight-line depreciation technique with 10%
MARR.

Answer the below question, based on the above scenario:

What is the present worth of Benefit in this investment?

Select one:
a. $19405
b. $18000
c. $21000
d. $19000

The correct answer is: $19405

Question 55

Scenario No. EA-A1

A computer system can be purchased for $18000. The

operating costs will be $10000 per year, and the useful life is
expected to be 5 years, with $5000 salvage value that time.
The present annual sales volume should increase by $16000 as
a result of acquiring the computer system. The company's tax
rate is 50%. Using straight-line depreciation technique with 10%
MARR.

Answer the below question, based on the above scenario:

What is the taxable income in year 3?

Select one:
a. $3200
b. $4000
c. $3400
d. $3600

The correct answer is: $3400

Question 56

Scenario No. EA-A1

A computer system can be purchased for $18000. The

operating costs will be $10000 per year, and the useful life is
expected to be 5 years, with $5000 salvage value that time.
The present annual sales volume should increase by $16000 as
a result of acquiring the computer system. The company's tax
rate is 50%. Using straight-line depreciation technique with 10%
MARR.

Answer the below question, based on the above scenario:

How much tax would have been paid at the end of year 5?
(Cumulative)

Select one:
a. $8500
b. $8900
c. $9200
d. $9100

The correct answer is: $8500

Question 57

Scenario No. EA-A1

A computer system can be purchased for $18000. The

operating costs will be $10000 per year, and the useful life is
expected to be 5 years, with $5000 salvage value that time.
The present annual sales volume should increase by $16000 as
a result of acquiring the computer system. The company's tax
rate is 50%. Using straight-line depreciation technique with 10%
MARR.

Answer the below question, based on the above scenario:

What is the applicable factor for P/A in this problem?

Select one:
a. 0.909
b. 3.791
c. 6.105
d. 1.661

The correct answer is: 3.791

Question 58

Scenario No. EA-A1

A computer system can be purchased for $18000. The

operating costs will be $10000 per year, and the useful life is
expected to be 5 years, with $5000 salvage value that time.
The present annual sales volume should increase by $16000 as
a result of acquiring the computer system. The company's tax
rate is 50%. Using straight-line depreciation technique with 10%
MARR.

Answer the below question, based on the above scenario:

What is the correct factor for P/F in this problem?

Select one:
a. 0.6209
b. 1.611
c. 0.1638
d. 3.791

The correct answer is: 0.6209

Question 59

Scenario No. EA-A1

A computer system can be purchased for $18000. The

operating costs will be $10000 per year, and the useful life is
expected to be 5 years, with $5000 salvage value that time.
The present annual sales volume should increase by $16000 as
a result of acquiring the computer system. The company's tax
rate is 50%. Using straight-line depreciation technique with 10%
MARR,

Answer the below question, based on the above scenario:

What is the book value of the computer at the end of year 3?

Select one:
a. $10200
b. $18000
c. $12400
d. $21000

The correct answer is: $10200

Question 60

Scenario No. EA-A2

A house is advertised for sale by the owner. An investor

estimates that the property could be rented out for $600 per
month (paid annually). Taxes and minor expenses are
estimated at $1200 per year. The house has been recently
remodeled and the tenant should have to pay all utilities. The
investor thinks he could sell the house for $85000 after 5 years.
MARR is 12%. Answer the below question based on this
scenario:

What is the largest amount that the investor can offer for the
property if his MARR is 12%, compounded annually?

Select one:
a. $49000
b. $23092
c. $69511
d. $59000

The correct answer is: $69511

Question 61

Scenario No. EA-A2

A house is advertised for sale by the owner. An investor

estimates that the property could be rented out for $600 per
month (paid annually). Taxes and minor expenses are
estimated at $1200 per year. The house has been recently
remodeled and the tenant should have to pay all utilities. The
investor thinks he could sell the house for $85000 after 5 years.
MARR is 12%. Answer the below question based on this
scenario:

What are the two functional notations you will use in this
problem?

Select one:
a. P/F, F/A
b. P/F, P/A
c. P/F, A/F
d. P/F, F/P

The correct answer is: P/F, P/A

Question 62

Scenario No. EA-A2

A house is advertised for sale by the owner. An investor

estimates that the property could be rented out for $600 per
month (paid annually). Taxes and minor expenses are
estimated at $1200 per year. The house has been recently
remodeled and the tenant should have to pay all utilities. The
investor thinks he could sell the house for $85000 after 5 years.
MARR is 12%. Answer the below question based on this
scenario:

What is the correct factor to find present worth of annuity in

this problem?

Select one:
a. 3.605
b. 4.233
c. 3.900
d. 0.344

The correct answer is: 3.605

Question 63

Scenario No. EA-A2

A house is advertised for sale by the owner. An investor

estimates that the property could be rented out for $600 per
month (paid annually). Taxes and minor expenses are
estimated at $1200 per year. The house has been recently
remodeled and the tenant should have to pay all utilities. The
investor thinks he could sell the house for $85000 after 5 years.
MARR is 12%. Answer the below question based on this
scenario:

What is the correct factor to find present worth of future worth

in this problem?

Select one:
a. 0.450
b. 0.567
c. 0.823
d. 0.233

The correct answer is: 0.567

Question 64

Scenario No. EA-A2

A house is advertised for sale by the owner. An investor

estimates that the property could be rented out for $600 per
month (paid annually). Taxes and minor expenses are
estimated at $1200 per year. The house has been recently
remodeled and the tenant should have to pay all utilities. The
investor thinks he could sell the house for $85000 after 5 years.
MARR is 12%. Answer the below question based on this
scenario:

Taxes and Maintenance expenses to be borne by the buyer,

will

Select one:
a. Increase the buying price
b. Decrease the buying price
c. Neither increase nor decrease
d. None of the above

The correct answer is: Decrease the buying price

Question 65

Scenario No. EA-A2

A house is advertised for sale by the owner. An investor

estimates that the property could be rented out for $600 per
month (paid annually). Taxes and minor expenses are
estimated at $1200 per year. The house has been recently
remodeled and the tenant should have to pay all utilities. The
investor thinks he could sell the house for $85000 after 5 years.
MARR is 12%. Answer the below question based on this
scenario:

The recommended buying price for this house is all of following

EXCEPT:

Select one:
a. $69000
b. $68000
c. $71000
d. $65000

The correct answer is: $71000

Question 66
A leasing company is evaluating two alternative cranes to
purchase and lease it.
Particulars Brand A Brand B
Purchase Cost USD 200000 USD 170000
Useful Life 6 Years 6 Years
Salvage Value USD 45000 USD 32000
Estimated Income / Year USD 82000 USD 67000
Estimated Expense / Year USD 12000 USD 8000
Income Tax / Year 22%
Depreciation Straight-Line
MARR 12%

Answer the below question based on the above data: What is

the book value for Brand A at the end of Year 3?

a. 162500
b. 122500
c. 182500
d. 0

The correct answer is: 122500

Question 67

Scenario No. EA-A3

A leasing company is evaluating two alternative cranes to purchase and lease it.

Particulars Brand A Brand B

Purchase Cost USD 200000 USD 170000

Useful Life 6 Years 6 Years

Salvage Value USD 45000 USD 32000

Estimated Income / Year USD 82000 USD 67000

Estimated Expense / Year USD 12000 USD 8000

Income Tax / Year 22%

Depreciation Straight-Line

MARR 12%

Answer the below question based on the above data:

Based on the given information, which brand you would choose?

Select one:
a. Brand A
b. Brand B
c. Brand A or B
d. Not Enough Information

The correct answer is: Brand A

Question 68

Scenario No. EA-A3

A leasing company is evaluating two alternative cranes to purchase and lease it.

Particulars Brand A Brand B

Purchase Cost USD 200000 USD 170000

Useful Life 6 Years 6 Years

Salvage Value USD 45000 USD 32000

Estimated Income / Year USD 82000 USD 67000

Estimated Expense / Year USD 12000 USD 8000

Income Tax / Year 22%

Depreciation Straight-Line

MARR 12%

Answer the below question based on the above data:

What is the NPW for Brand B?

Select one:
a. $56200
b. $85695
c. $241275
d. $22506

The correct answer is: $56200

Question 69

Scenario No. EA-A3

A leasing company is evaluating two alternative cranes to purchase and lease it.

Particulars Brand A Brand B

Purchase Cost USD 200000 USD 170000

Useful Life 6 Years 6 Years

Salvage Value USD 45000 USD 32000

Estimated Income / Year USD 82000 USD 67000

Estimated Expense / Year USD 12000 USD 8000

Income Tax / Year 22%

Depreciation Straight-Line

MARR 12%

Answer the below question based on the above data:

The tax payable at the end of year 5 for Brand A is?

Select one:
a. $7012
b. $9717
c. $4000
d. $27500

The correct answer is: $9717

Question 70

Scenario No. EA-A3

A leasing company is evaluating two alternative cranes to purchase and lease it.

Particulars Brand A Brand B

Purchase Cost USD 200000 USD 170000

Useful Life 6 Years 6 Years

Salvage Value USD 45000 USD 32000

Estimated Income / Year USD 82000 USD 67000

Estimated Expense / Year USD 12000 USD 8000

Income Tax / Year 22%

Depreciation Straight-Line

MARR 12%

Answer the below question based on the above data:

What is the present worth of the salvage value for Brand B?

Select one:
a. $21000
b. $16211
c. $18780
d. $12221

The correct answer is: $16211

Question 71

Scenario No. EA-A3

A leasing company is evaluating two alternative cranes to purchase and lease it.

Particulars Brand A Brand B

Purchase Cost USD 200000 USD 170000

Useful Life 6 Years 6 Years

Salvage Value USD 45000 USD 32000

Estimated Income / Year USD 82000 USD 67000

Estimated Expense / Year USD 12000 USD 8000

Income Tax / Year 22%

Depreciation Straight-Line

MARR 12%

Answer the below question based on the above data:

What is the annual taxable income for Brand A?

Select one:
a. $32502
b. $46500
c. $44167
d. $41232

The correct answer is: $44167

Question 72

Scenario No. EA-A3

A leasing company is evaluating two alternative cranes to purchase and lease it.

Particulars Brand A Brand B

Purchase Cost USD 200000 USD 170000

Useful Life 6 Years 6 Years

Salvage Value USD 45000 USD 32000

Estimated Income / Year USD 82000 USD 67000

Estimated Expense / Year USD 12000 USD 8000

Income Tax / Year 22%

Depreciation Straight-Line

MARR 12%

Answer the below question based on the above data:

Which of the following statement is true as it relates to this case?

Select one:
a. Select the brand which gives higher NPW
b. Select the brand which gives lower NPW
c. Select the brand which gives higher annual profit
d. Select the brand which gives higher salvage value

The correct answer is: Select the brand which gives higher NPW
Question 73
Value methodology can be best practiced in:

Select one:
a. Large Scale Projects
b. Only Construction Projects
c. Oil and Gas Project
d. Any types of project

The correct answer is: Any types of project

Question 74

Current CPI = 0.95, Budgeted cost for work performed is 26424

and the project budget is 86,000. What is Estimate to
Complete if the remaining work will be performed at budget
rate?

Select one:
a. 59576
b. 78524
c. 89542
d. 45813

The correct answer is: 59576

Question 75
What is the accuracy range of Definitive Estimate?

Select one:
a. -2% to 5%
b. -5% to 15%
c. -8% to 15%
d. -10% to 15%

The correct answer is: -5% to 15%

Question 76

Which estimating methodologies are used to develop Class 5

and Class 4 estimates?

Select one:
a. Optimistic
b. Deterministic
c. Conceptual
d. Design based estimate

The correct answer is: Conceptual

Question 77

Adjustment to cost to allow for overhead and profit, to

improve cash flow is known as

Select one:
a. Costing
b. Take off
c. Pricing
d. Correcting

The correct answer is: Pricing

Question 78

What is the cost of 80MW power plant if the cost of similar

power plant with 62MW capacity was 1.2Million? Take
exponent factor as 0.64

Select one:
a. 2.6
b. 1.41
c. 2.2
d. 1.6

The correct answer is: 1.41

Question 79

If the project budget is $ 80000 and work progress is 62%. What

is the Budgeted Cost of Work Performed?

Select one:
a. 43,000
b. 49,600
c. 62,600
d. 64,340

The correct answer is: 49,600

Question 80

"Incremental Milestone” method is suitable for measuring work

progress for which type of tasks

Select one:
a. Task which involves sub tasks which are usually carried out in
sequential manner
b. Tasks which are performed very quickly
c. Task consist on number of repeated units involving almost
same level of effort
d. Tasks which may take long time

The correct answer is: Task which involves sub tasks which are
usually carried out in sequential manner
Question 81

If the optimistic estimate for an activity is 24 days, and the

pessimistic estimate is 36 days, what is the standard deviation
of this activity?

Select one:
a. 1
b. 3
c. 2
d. 4

The correct answer is: 2

Question 82

If the variance for a data is 8, what is the standard deviation?

Select one:
a. 26.28
b. 8.12
c. 6.15
d. 2.83

The correct answer is: 2.83

Question 83

What is sunk cost?

Select one:
a. Assets are carried on the firm's books at original cost less any
depreciation.
b. Funds already spent by virtue of past decisions.
c. The value of an item as reflected in the firm's book.
d. The foregone benefit by choosing one alternative over
another.

The correct answer is: Funds already spent by virtue of past

decisions.
Question 84

Crashing in time management is:

Select one:
a. A schedule compression technique that typically includes
reducing schedule activity durations and increasing the
assignment of resources to schedule activities.
b. A schedule compression technique in which phases or
activities that normally would be done in sequence are
performed in parallel.
c. The timely input of data to calculate the critical path.
d. Equivalent to minimizing float.

The correct answer is: A schedule compression technique that

typically includes reducing schedule activity durations and
increasing the assignment of resources to schedule activities.
Question 85

All of the following are common depreciation techniques

EXCEPT:

Select one:
a. Straight line method
b. Double declining balance method
c. Sum of years digit method
d. Sunk cost method

The correct answer is: Sunk cost method

Question 86

The selection of a project based on IRR should satisfy which of

the following criteria?

Select one:
a. IRR must be positive
b. IRR > NPW
c. IRR < MARR
d. IRR> MARR

The correct answer is: IRR> MARR

Question 87

Which of the following is used to represent historical project

record showing actual start and finish dates for work
performed?

Select one:
a. As-Planned Schedule
b. As-Built Schedule
c. Level 4 Schedule
d. As-Of data Schedule

The correct answer is: As-Built Schedule

Question 88

A fund created by making periodic deposits (usually equal) at

compound interest in order to accumulate a given sum at a
given future time for some specific purpose is known as:

Select one:
a. Capital Recovery Fund
b. Sinking Fund
c. Capital Fund
d. Payback Fund

The correct answer is: Sinking Fund

Question 89

A ___________ is a specific type of histogram, ordered by

frequency of occurrence, which shows how many defects
were generated by type or category of identified cause.

Select one:
a. Pareto chart
b. Bar chart
c. Network diagram
d. Critical path

The correct answer is: Pareto chart

Question 90

To be successful, the organization should be committed to

addressing the management of risk:

Select one:
a. Just before a meeting with a client.
b. Proactively and consistently throughout the project.
c. As soon as time and cost estimates are ready.
d. Early in the execution phase.

The correct answer is: Proactively and consistently throughout

the project.
Question 91

What does cost of quality mean?

Select one:
a. The sacrifice of unessential project objectives to meet
essential quality standards.
b. The life cycle cost of the project.
c. The total cost of all quality related activities.
d. The cost of meeting project objectives.

The correct answer is: The total cost of all quality related
activities.
Question 92

Breakeven point is when the total revenue is equal to

Select one:
a. fixed cost
b. Variable cost
c. Expenditures minus fixed cost
d. Variable cost plus Fixed cost

The correct answer is: Variable cost plus Fixed cost

Question 93

AACE international Class 1 & Class 2 falls under which ANSI

estimating classification?

Select one:
a. Order of Magnitude
b. None of the above
c. Budget estimate
d. Definitive estimate

The correct answer is: Definitive estimate

Question 94

CPI for a project is 0.92. What is the project status?

Select one:
a. Project work is stopped
b. Cost incurred till date is less than what was planned
c. Project has overrun its budget
d. Project has under run its budget

The correct answer is: Project has overrun its budget

Question 95

Which of the following is not a depreciation technique?

Select one:
a. Incremental Milestone Depreciation
b. Modified Accelerated Cost Recovery system Depreciation
c. Double Declining Balance Depreciation
d. Straight-Line Depreciation

The correct answer is: Incremental Milestone Depreciation

Question 96

Which motivational theory uses the concept of Theory X& Y?

Select one:
a. Maslow
b. Deming
c. McGregor
d. Herzberg

The correct answer is: McGregor

Question 97

All of the following are the advantages of a project managed

in matrix structure EXCEPT:

Select one:
a. Matrix structures were developed to more efficiently use
common resources.
b. Project Team member's reports to both project manager
and department manager.
c. It allows for efficient management coordination of the total
project workload.
d. Project team member can possibly work on different project
at a same time.

The correct answer is: Project Team member's reports to both

project manager and department manager.
Question 98

Which of the following best describes the purpose of

constructability planning?

Select one:
a. The purpose ofconstructability is to reduce costs by
considering alternativedesign and/or installation methods.
b. Constructability is largely to do with the scheduling of
resources, organization, site access, and infrastructure.
c. It allows for efficient management coordination of the total
project workload.
d. Constructability is also known as 'fast track program'.

The correct answer is: Constructability is also known as 'fast

track program'.
Question 99

Joseph M. Juran has described managing for quality by using

three managerial steps, called the JuranTriology. Which of the
following represent it?

Select one:
a. Quality Planning, Quality Control and Quality Improvement
b. Quality Planning, Quality Assurance and Quality Control
c. Quality Planning, Quality Assurance and Cost of Quality
d. Quality Planning, Quality Assurance and Total Quality
Management

The correct answer is: Quality Planning, Quality Control and

Quality Improvement
Question 100

For which of the following types of contract the scope of work

is well defined and the contracting risks are clearly identified?

Select one:
a. Target Contracts
b. Unit Price Contract
c. Fixed-Price/Lump-Sum Contracts
d. Cost Plus Contracts

The correct answer is: Fixed-Price/Lump-Sum Contracts

Question 101

All of the following are advantage of fixed price contract

EXCEPT:

Select one:
a. low financial risk to owner since maximum risk is on the
contractor;
b. cost and project viability are known before a commitment is
made;
c. minimal owner supervision--mostly quality assurance and
schedule monitoring;
d. variations (changes) are difficult and costly--the contractor,
having quoted keenly when bidding, will try to make as much
as possible on extras;

The correct answer is: variations (changes) are difficult and

costly--the contractor, having quoted keenly when bidding,
will try to make as much as possible on extras;
Question 102

Which of the following contracting arrangement helps in

shorten the project delivery time?

Select one:
a. Single Prime Contractor
b. Multiple Prime Contractor
c. Agency Construction Management
d. Design/Build

The correct answer is: Design/Build

Question 103

The sum of the practices and processes that an enterprise uses

to manage the total life-cycle-cost investment in its portfolio of
strategic assets is known as:

Select one:
a. Cost Engineering
b. Value Engineering
c. Total Cost Management
d. Asset Management

The correct answer is: Total Cost Management

Question 104

Which of the following type of float calculatesthe amount of

time that the completion of an activity may exceed its
scheduled finish time without increasing the start time of any
succeeding activity?

Select one:
a. Total Float
b. Free Float
c. Independent Float
d. Positive Float

The correct answer is: Free Float

Question 105

The longest chain or chains of activities, in terms of time or

duration, through a network is known as:

Select one:
a. Critical Path
b. Critical Chain
c. Critical Network
d. Project Schedule

The correct answer is: Critical Path

Question 106

Which of the following level of schedule comprises of key

events or major millstones?

Select one:
a. Level 1
b. Level 2
c. Level 3
d. Level 4

The correct answer is: Level 1

Question 107

All of the following are Rensis Likert Leadership styles EXCEPT:

Select one:
a. Exploitative - Authoritative
b. Benevolent - Authoritative
c. Consultative
d. Hygiene Factor

The correct answer is: Hygiene Factor

Question 108

Which of the following level of schedules displays summary

project activities depicting critical work and other
management selected activities generally indicating the
activities' ES and EF dates?

Select one:
a. Level 1
b. Level 2
c. Level 3
d. Level 4

The correct answer is: Level 2

Question 109

The _____________ through the network determines

eachactivity's ES and EF and the project's duration or the
earliestdate a project can finish.

Select one:
a. Backward Pass
b. Forward Pass
c. Total Float
d. PDM

The correct answer is: Forward Pass

Question 110

You are managing a software project. Your QA manager tells

you that you need to plan to haveher team start their test
planning activity so that it finishes just before testing begins. But
otherthan that, she says it can start as late in the project as
necessary. What's the relationship betweenthe test planning
activity and the testing activity?

Select one:
a. Start-to-Start (SS)
b. Start-to-Finish(SF)
c. Finish-to-Start(FS)
d. Finish-to-Finish(FF)

The correct answer is: Finish-to-Start(FS)

Question 111

The assignment of desired start and finish timesto each activity

in the project within the overall time cyclerequired for
completion according to plan is known as:

Select one:
a. Costing
b. Scheduling
c. Planning
d. Network Analysis

The correct answer is: Scheduling

Question 112

An amount added to an estimate to allow foritems, conditions,

or events for which the state, occurrence,and/or effect is
uncertain and that experience shows willlikely result, in
aggregate, in additional costs is known as:

Select one:
a. Contingency
b. Allowances
c. Reserve
d. Buffer

The correct answer is: Contingency

Question 113

Any combination of letters, numbers, orblanks which describes

and identifies any activity or task shown on the schedule is
known as:

Select one:
a. Activity Code
b. Code of Account
c. Chart of Account
d. WBS Identifier

The correct answer is: Activity Code

Question 114

Who developed Managerial Grid on People and Production

Problem?

Select one:
a. Fred Fielder
b. David McClelland
c. Robert Blake and Jane Mouton
d. None of the above

The correct answer is: Robert Blake and Jane Mouton

Question 115

What are the basic types of contracts typically used in

contracting for capital projects?

Select one:
a. Fixed price, cost reimbursable, cost-plus, fixed price with
incentive
b. Fixed price, unit price, cost reimbursable, target contracts
c. Time and materials, cost-plus fixed fee, unit price, award fee
d. Unit price, time and materials, fixed price with economic
adjustment, lump sum

The correct answer is: Fixed price, unit price, cost reimbursable,
target contracts
Question 116

All of the following are true of a "dummy activity” EXCEPT:

Select one:
a. It is unique to ADM networks
b. It has no time duration
c. It ensures an activity has a unique "i-j” designator
d. It cannot be used to show relationships between activities
with more than one predecessor

The correct answer is: It ensures an activity has a unique "i-j”

designator
Question 117

What kind of a relationship is implied when completion of a

successor is dependent on initiation of its predecessor?

Select one:
a. FS
b. FF
c. SS
d. SF

The correct answer is: SS

Question 118
A project has the following Earned value data assessed: AC: $
4,000,000 CV: $ -500,000 SPI: 1.12 BAC: $ 9,650,000. What is the
Earned value of the project?

Select one:
a. $3,000,000
b. $3,500,000
c. $4,480,000
d. $5,650,000

The correct answer is: $3,500,000

Question 119

The critical path is established by calculating the following

dates:

Select one:
a. Start-to-start, start-to-finish, finish-to-finish, finish-to-start.
b. Early start, early finish, late start, late finish.
c. Predecessor-to-successor, predecessor-to-predecessor,
successor-to-successor.
d. Primary-to-secondary, primary-to-finish, secondary-to-
secondary, finish-to-finish.

The correct answer is: Early start, early finish, late start, late finish.
Question 120

The following are the methods of critical path scheduling

except:

Select one:
a. Arrow Diagramming Method
b. PERT
c. Precedence Diagramming Method
d. Activity on Arrow

The correct answer is: PERT