AACE International Updated CCP Exam Questions and Answers by madina

The present worth interest factor for this purchase in the fifth year can be determined using the formula for the present worth of a single amount:

PW=1(1+i)nPW = \frac{1}{(1 + i)^n}PW=(1+i)n1​

Where:

iii is the interest rate (10.5% or 0.105)

nnn is the number of years (5 years)

Using the formula:

PW=1(1+0.105)5≈11.6474≈0.6209PW = \frac{1}{(1 + 0.105)^5} \approx \frac{1}{1.6474} \approx 0.6209PW=(1+0.105)51​≈1.64741​≈0.6209

So, the correct answer isA. 0.6209.

Deliberate low bidding, sometimes referred to as "buying the job," is a strategy where a contractor bids below cost to win a contract, with the expectation of recouping losses through change orders, future projects, or other means.

Key Points:

Reasons for Low Bidding:

Survival:Contractors might low bid to secure work during tough economic times.

Reducing Competition:A low bid can push competitors out of the market.

Detecting Errors:Identifying significant errors in the purchaser's RFQ might lead to a strategic low bid.

Backing Out of Bid Competition:

This option does not align with the strategy of low bidding. Backing out would remove the contractor from the competition entirely, which is contrary to the purpose of low bidding.

Conclusion:The correct answer isB. Backing out of the bid competitionbecause this action is not a reason for low bidding—it is the opposite of participating in the bid.

Effective meetings require careful planning and execution. The key elements include setting cleargoalsfor the meeting, preparing anagendathat outlines the topics to be discussed, and ensuringpreparationby all participants.Controlis essential to keep the meeting on track, avoiding digressions and ensuring that time is managed effectively.Good listening skillsare crucial for understanding different perspectives and fostering meaningful discussions.Relevant discussionsensure that the meeting stays focused on its objectives.

Option AandOption Bmiss the inclusion of control and listening skills, which are vital for effective meetings.

Option Dfocuses more on physical tools rather than the essential skills and processes needed for a productive meeting.

The Schedule Performance Index (SPI) is calculated using the formula:

SPI=Earned Value (EV)Planned Value (PV)\text{SPI} = \frac{\text{Earned Value (EV)}}{\text{Planned Value (PV)}}SPI=Planned Value (PV)Earned Value (EV)​

Given:

Total Budgeted Hours = 12,000 hours

Planned Completion = 75%

Percent Complete = 66%

EV=12,000×0.66=7,920 hours\text{EV} = 12,000 \times 0.66 = 7,920 \text{ hours}EV=12,000×0.66=7,920 hours PV=12,000×0.75=9,000 hours\text{PV} = 12,000 \times 0.75 = 9,000 \text{ hours}PV=12,000×0.75=9,000 hours SPI=7,9209,000≈0.88\text{SPI} = \frac{7,920}{9,000} \approx 0.88SPI=9,0007,920​≈0.88

So, the correct answer isB. 0.88.