Post New Rivera Manpower Services Accounting General Interview Questions
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You are a project manager for Laurel's theater productions. Your new project is coming in over budget and requires a cost change through the cost change control system. You know all of the following are true regarding Cost Control except: A. Performance is monitored to detect variances B. Changes are reflected in the cost baseline C. Changes are monitored and reflected in the project scope D. Changes are monitored so that inappropriate changes do not get into the cost baseline
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Equipment A has a cost of Rs.75,000 and net cash flow of Rs.20000 per year for six years. A substitute equipment B would cost Rs.50,000 and generate net cash flow of Rs.14,000 per year for six years. The required rate of return of both equipments is 11 per cent. Calculate the IRR and NPV for the equipments. Which equipment should be accepted and why?
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