AACE International CCP Exam Dumps

In project scheduling, performing a backward pass through a precedence diagram allows the project manager to calculate the total float for each activity. The backward pass starts from the project's end date and works backward to determine the latest possible start and finish times for each activity without delaying the project. This calculation is essential for identifying critical path activities and understanding where there is flexibility in the schedule (i.e., float) for non-critical tasks.

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To calculate the increase in copper prices over 30 months (which is 2.5 years), we apply the inflation rates for the first two years and half of the third year:

Year 1: 1.0%

Year 2: 1.5%

Year 3 (half-year): 1.5% / 2 = 0.75%

The total percentage increase is calculated as:

TotalIncrease=(1+0.01)(1+0.015)(1+0.0075)1\text{Total Increase} = (1 + 0.01) \times (1 + 0.015) \times (1 + 0.0075) - 1TotalIncrease=(1+0.01)(1+0.015)(1+0.0075)1 \text{Total Increase} = 1.01 \times 1.015 \times 1.0075 - 1 \approx 1.066 - 1 = 0.066 \text{ or 6.6%}

So, the correct answer is C. 6.6%.

To calculate the 25-year after-tax present worth of this project, we need to consider the income, expenses, depreciation, and taxes.

First, calculate the annual depreciation:

Depreciation=InitialCostLife=80,00025=3,200\text{Depreciation} = \frac{\text{Initial Cost}}{\text{Life}} = \frac{80,000}{25} = 3,200Depreciation=LifeInitialCost=2580,000=3,200

Now, calculate the taxable income each year:

TaxableIncome=RevenueExpensesDepreciation=22,50012,0003,200=7,300\text{Taxable Income} = \text{Revenue} - \text{Expenses} - \text{Depreciation} = 22,500 - 12,000 - 3,200 = 7,300TaxableIncome=RevenueExpensesDepreciation=22,50012,0003,200=7,300

Calculate the tax:

Tax=TaxableIncomeTaxRate=7,3000.53=3,869\text{Tax} = \text{Taxable Income} \times \text{Tax Rate} = 7,300 \times 0.53 = 3,869Tax=TaxableIncomeTaxRate=7,3000.53=3,869

Net income after tax:

NetIncome=TaxableIncomeTax=7,3003,869=3,431\text{Net Income} = \text{Taxable Income} - \text{Tax} = 7,300 - 3,869 = 3,431NetIncome=TaxableIncomeTax=7,3003,869=3,431

Add back depreciation (since it's a non-cash expense):

CashFlow=3,431+3,200=6,631\text{Cash Flow} = 3,431 + 3,200 = 6,631CashFlow=3,431+3,200=6,631

Finally, calculate the present worth using the formula for the present worth of an annuity:

PresentWorth=6,631(1(1+0.10)250.10)137,466\text{Present Worth} = 6,631 \times \left(\frac{1-(1+0.10)^{-25}}{0.10}\right) \approx 137,466PresentWorth=6,631(0.101(1+0.10)25)137,466

So, the correct answer is B. $137,466.

Consideration: Each party must bring something of value to the agreement.

Competent Parties: The parties involved must be legally able to contract.

Legality of Purpose: The purpose of the contract must be lawful.

An 'Agent' is not a requirement for forming a contract. An agent may act on behalf of one party, but their existence or role is not a requisite for a valid contract. Thus, the correct answer is D. Agent.

Given Scenario:

The difference between the latest allowable end time and the earliest allowable end time of a schedule activity is inquired.

This difference is referred to as Total Slack or Total Float. It indicates the amount of time that a project task can be delayed without affecting the overall project schedule.