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Free PDF 2025 Professional AACE International CCP Pdf Format
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Quiz CCP - Perfect Certified Cost Professional (CCP) Exam Pdf Format
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AACE International Certified Cost Professional (CCP) Exam Sample Questions (Q81-Q86):
NEW QUESTION # 81
An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.
Answer the question using a straight line depreciation and a 10% interest rate.
If you buy a lot for $3,000 and sell it for $6,000 at the end of 8 years, what is your annual rate of return?
- A. 9.1%
- B. 10.4%
- C. 9.9%
- D. 8.3%
Answer: A
Explanation:
To calculate the annual rate of return on the investment, you can use the formula for the compound annual growth rate (CAGR):
CAGR=(FVPV)1n-1 ext{CAGR} = left(rac{FV}{PV} ight)