Free IMANET CMA Exam Questions

Become IMANET Certified with updated CMA exam questions and correct answers

Page: 1 / 268

Total 1336 Questions | Updated On: Jan 09, 2025

Add To Cart

Question 1

The net present value of a proposed investment is negative; therefore, the discount rate used must

A : eater than the project’s internal rate of return.

B : than the project’s internal rate of return.

C : eater than the firm’s cost of equity.

D : than the risk-free rate.

Answer: A

Question 2

The 5 Ms of the advertising process include

I. Mission

II. Money

Ill. Market sensing

IV. Mass marketing

V. Media

A : and III only.

B : ll1andVonly.

C : , IV, and V only.

D : I lll, IV, and V.

Answer: B

Question 3

Marketing is involved in all phases of the business-process approach to approach to value creation

and delivery. In the tactical marketing phase, the firm

A : fines market segments

B : lects target markets

C : elops the offering

D : es an integrated marketing process to communicate value

Answer: D

Question 4

Union Electric Company must clean up the water released from its generating plant. The company’s

cost of capital is 12 percent for average risk projects, and that rate is normally adjusted up or down

by 2 percentage points for high- and low- risk projects. Clean-Up Plan

A. which is of average risk, has an initial cost of $10 million, and its operating cost will be $1 million

per year for its 10-year life. Plan B, which is a high-risk project, has an initial cost of $5 million, and its

annual operating cost over Years 1 to 10 will be $2 million. What is the approximate PV of costs for

the better project?

A : $15,432,000

B : $15,650,000

C : $16,300,000

D : $17,290,000

Answer: B

Question 5

In equipment-replacement decisions, which one of the following does not affect the decision-making

process?

A : rrent disposal price of the old equipment.

B : erating costs of the old equipment.

C : Original fair market value of the old equipment.

D : t of the new equipment

Answer: C

Page: 1 / 268

Total 1336 Questions | Updated On: Jan 09, 2025

Add To Cart