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AACE International Exam CCP Topic 4 Question 25 Discussion

Actual exam question for AACE International's CCP exam
Question #: 25
Topic #: 4
[All CCP Questions]

A used concrete pumping truck can be purchased for $125,000. The operation costs are expected to be $65,000 the first year and increase 5% each year thereafter. As a result of the purchase, the company will see an increase in income of $100,000 the first year and 5% more each subsequent year. The company uses straight-line depreciation. The truck will have a useful life of five (5) years and no salvage value. Management would like to see a 10% return on any investment. The company's tax rate is 28%.

Which of the following statements is correct?

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Suggested Answer: C

Histograms and frequency distributions are common graphical methods used to describe quantitative data, which involves numerical values that can be measured. These methods help visualize the distribution, frequency, and central tendency of the data. Qualitative data, on the other hand, is described using different methods such as bar charts and pie charts, not histograms or frequency distributions. Therefore, the correct answer is C. Some graphic methods for describing quantitative data are histograms and frequency distribution.


by Zena at Mar 19, 2025, 09:19 PM

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Felix
3 days ago
Ah, the old concrete pumping truck investment conundrum. I bet the correct answer involves some kind of financial analysis formula. Maybe they're trying to trip us up with those random statistics and graphics choices. Time to put on my financial analysis hat and get to work!
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Corinne
4 days ago
Well, this is certainly an interesting question. I'm guessing the correct answer has to do with calculating the net present value of the investment and comparing it to the required rate of return. Though I have to say, the humor in these wrong answer choices is quite entertaining.
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Abraham
5 days ago
Haha, looks like someone got their statistics and finance topics mixed up. I'm pretty sure none of those answer choices are right for this question. They should have included something about depreciation, cash flows, and discounting rates.
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Arlyne
12 days ago
I think the correct statement is A.
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Shaun
14 days ago
This question is definitely not about normal curves or graphic methods. It's clearly a question about the financial analysis of a concrete pumping truck investment. The correct answer should be related to the net present value, payback period, or internal rate of return.
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Tony
3 hours ago
I think the correct answer should be related to the net present value calculation.
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Tony
2 days ago
C) Some graphic methods for describing quantitative data are histograms and frequency distribution.
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Tony
4 days ago
A) The graph of a normal curve is bell-shaped and is symmetrical about the standard deviation.
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