AACE International CCP Exam - Topic 6 Question 31 Discussion

Actual exam question for AACE International's CCP exam

Question #: 31
Topic #: 6

[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?

AThe graph of a normal curve is bell-shaped and is symmetrical about the standard deviation.

BThe graph of a normal curve is bell-shaped and is symmetrical about the variance.

CSome graphic methods for describing quantitative data ate histograms and frequency distribution.

DSome graphic methods for describing qualitative data are histograms and frequency distribution.

Show Suggested Answer

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 Fausto at Aug 04, 2025, 12:36 AM

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Maricela

2 months ago

The depreciation method is straight-line, right? That makes sense.

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Sharen

2 months ago

Wait, how can they expect a 5% income increase every year? Seems optimistic.

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Fernanda

3 months ago

A concrete pumping truck for $125k? That's a big investment!

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Dorathy

3 months ago

Totally agree, but the income increase looks promising!

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Willow

3 months ago

I thought variance was about spread, not symmetry. What's up with that?

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Tula

3 months ago

I’m a bit confused about the definitions. I thought frequency distributions could apply to both types of data, but I can't remember the specifics.

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Erasmo

3 months ago

I definitely recall that histograms are used for quantitative data, so C seems right to me. D sounds off because qualitative data uses different methods.

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Josphine

4 months ago

I think I practiced a similar question where we had to identify characteristics of normal distributions. I feel like A and B are both related but one must be wrong.

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Kayleigh

4 months ago

I remember studying about normal curves, but I'm not sure if it's about standard deviation or variance.

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Jesusita

4 months ago

Alright, time to put my financial analysis skills to the test. I'm feeling confident I can work through this methodically and come up with the right answer.

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Meghan

4 months ago

This looks like a pretty straightforward net present value calculation. I just need to make sure I have all the cash flows and the discount rate right. If I can get that part right, I think I can nail this question.

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Yvonne

4 months ago

Hmm, I'm a little confused about the income increases and the 5% growth rate. I'll need to double-check my understanding of that part. And the tax rate is important too.

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Refugia

5 months ago

Okay, let's see. We have a used concrete pumping truck, operation costs, income increases, depreciation, and a required 10% return on investment. Sounds like a capital budgeting problem. I think I can work through this step-by-step.

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Ruth

5 months ago

Whoa, this is a lot of information to take in. I better read through it carefully and make sure I understand all the details before trying to solve this.

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Maryrose

5 months ago

Haha, this exam must have been written by someone who's never actually worked with concrete pumping trucks. I'd like to see them try to operate one of those beasts!

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