Thursday 31 March 2016

Cima P1 Exam Question No 46

Question No 46:

A company has a money cost of capital of 9%. The rate of inflation is 3%. The company’s real cost of capital is nearest to?

A.
6.0%
B.
12.0%
C.
12.3%
D.
5.8%

Answer: D

Thursday 24 March 2016

Cima P1 Exam Question No 45

Question No 45:

The correct definition of a bill of exchange is?

A.
A negotiable instrument which provides evidence of a fixed-term deposit with a bank
B.
A document setting out a commitment to pay a sum of money at a specified point in time
C.
A debt obligation with a long term maturity usually issued by companies and governments
D.
A legal document showing the right to receive interest and capital repayment

Answer: B

Thursday 17 March 2016

Cima P1 Exam Question No 44

Question No 44:

FP has decided not to use the EOQ and has decided to order 2,600 calculators each time an order is placed. The total ordering and holding costs per annum will be:

A.
$5,240
B.
$19,800
C.
$208,014
D.
$3,420

Answer: D

Thursday 10 March 2016

Cima P1 Exam Question No 43

Question No 43:

The economic order quantity (EOQ) for this model of calculator will be?

A.
2,438 units
B.
771 units
C.
67 units
D.
2,060 units

Answer: A

Thursday 3 March 2016

Cima P1 Exam Question No 42

Question No 42:

A company’s management is considering investing in a project with an expected life of 4 years. It has a positive net present value of $180,000 when cash flows are discounted at 8% per annum. The project’s cash flows include a cash outflow of $100,000 for each of the four years. No tax is payable on projects of this type.
The percentage increase in the annual cash outflow that would cause the company’s management to reject the project from a financial perspective is, to the nearest 0.1%:

A.
54.3%
B.
45.0%
C.
55.6%
D.
184.0%

Answer: A