Question 66

Which THREE of the following conditions are required for a sustained learning curve to apply?
  • Question 67

    SQ has the opportunity to invest in project X. The net present value for project X is $12,600. Cash inflows occur in years 1, 2 and 3. The company's cost of capital is 14%.
    Calculate the annualized equivalent annuity of project X.
    Give your answer to the nearest whole $.

    Question 68

    Which of the following are TRUE about the theory of constraints? Select ALL that apply.
  • Question 69

    The management of a leisure company, who are risk averse, have just approved an investment in a new amusement park. The country in which the amusement park will be located has a warm and mostly dry climate throughout the year.
    A number of specific risks related to this investment have been identified as follows.
    (1) Losses of very small amounts of revenue due to poor weather.
    (2) A significant financial liability may arise due to the injury of a member of the public.
    (3) Loss of several days of revenue due to rides being unavailable because of poor maintenance routines.
    (4) Income fraud as a consequence of the high levels of cash handled by employees.
    Using the TARA framework, which is the most appropriate way of managing each of these risks?
  • Question 70

    A company is investing in a huge diversification project. The plan is to develop and sell a whole new product line that they have never sold before. They've already started a massive marketing campaign for this new product line and they are getting good feedback in their market research.
    They've had to use debt funding in order to finance the project, but they hope that the returns will be worth the investment and restructuring. If they are successful they will be a step ahead of all their competitors and offer something none of them can.
    What is the risk appetite of this company?