Professional Documents
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Past CPA Board On MAS
Past CPA Board On MAS
55. Rano Co. has the opportunity to invest in a two-year project which is
expected to produce cash flow from operation, net of income taxes, of
P100, 000 in the first year and P200, 000 in the second year. Rano has a
cost of capital of 20%. For this project, Rano should be willing to invest
immediately a maximum of
a. P283, 300
b. P249, 900
c. P222, 100
d. P208, 200
MAY 2009 CPA
Board Exam
56. The net present value capital budgeting technique can be used when
cash flows from period to period are:
Uniform Uneven
a. No Yes
b. No No
c. Yes No
d. Yes Yes
57. It is assumed that cash flows are reinvested at the rate actually earned
by the investment in which of the following capital budgeting techniques?
Time-adjusted rate of return Net present value
a. Yes Yes
b. Yes No
c. No No
d. No Yes
61. If income taxes are ignore, the payback period for the new machine
would be
a. 1.67 years
b. 2.50 years
c. 4.17 years
d. 5.00 years
62. For 19x9, Nelson Industries increased earnings before interest and
taxes by 17%. During the same period, net income after tax increased by
42%. The degree of financial leverage that existed during 19x9 is
a. 1.70
b. 4.20
c. 2.47
d. 5.90
64. Among the following major parts of a project feasibility study, which
grouping is considered critical?
a. Management, financial and social returns
b. Technical. Financial and environmental aspects
c. Economic benefits, management, financial
d. Marketing, engineering or technical and financial
65. The statements below about project feasibility studies are the true
except:
a. Any change which can materially alter the assumptions used in the
preparation of the forecast will render it useless
b. It is important for government agencies in order to determine
entitlement to government incentives
c. It also covers the social desirability aspects of a proposed
undertaking
d. Since data gathering is a basic step in its preparation, all the
necessary and required information will always be available.
ANSWER KEY
1. A 44. D
2. A 45. A
3. C 46. D
4. C 47. A
5. B 48. D
6. C 49. D
7. A 50. D
8. A 51. B
9. D 52. A
10. D 53. D
11. A 54. C
12. B 55. C
13. D 56. D
14. C 57. B
15. A 58. A
16. B 59. A
17. D 60. B
18. A 61. B
19. C 62. C
20. A 63. A
21. B 64. D
22. A 65. D
23. B 66. B
24. D
25. A
26. B
27. C
28. C
29. B
30. A
31. C
32. A
33. D
34. D
35. D
36. C
37. D
38. A
39. C
40. A
41. B
42. C
43. A
We must prepare for every fight that were going to face. When at times you
feel you wanted to give up, make a rest but never stop pursuing your
dreams. Every winning is worthy when we strive hard to achieve it.
When we left nothing but God, we will realize that God is enough. Lot of
people say mahirap maging CPA but always bear in mind that walang
mahirap kay God.
KAYA NATIN YAN I believe, merong lalabas ulit sa mga compilation na ito
sa October Board Exam kase nasa test bank na ng examiner ang mga yan. I
hope mapasadahan nyo kahit saglit lang ito. Every point is important
Good luck to all!!!