ACC 544 EDU Extraordinary Success/acc544edu.com ACC 544 EDU Extraordinary Success/acc544edu.com | Page 8

• Question 28 Assume that management of Trayco has generated the
following data about an investment project that has a five-year life:
• Question 29 A company purchases an item for $43,000. The salvage
value of the item is $3,000. The cost of capital is 8%. Pertinent
information related to this purchase is as follows:
• Question 30 A project has a present value of future net cash inflows
of $120,000 and an initial investment of $110,000. Calculate the excess
present value index for the project.
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ACC 544 Quiz 4
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ACC 544 Quiz 4
• Question 1 Central Winery manufactured two products, A and B.
Estimated demand for product A was 10,000 bottles and for product B
was 30,000 bottles. The estimated sales price per bottle for A was $6.00
and for B was $8.00. Actual demand for product A was 8,000 bottles
and for product B was 33,000 bottles. The actual price per bottle for A
was $6.20 and for B was $7.70. What amount would be the total selling
price variance for Central Winery?
• Question 2 A defense contractor for a government space project
has incurred $2,500,000 in actual design costs to date for a guidance
system whose total budgeted design cost is $3,000,000. If the design
phase of the project is 60% complete, what is the amount of the
contractor’s current overrun/savings on this design work?