CMA (IMA) Practice Test 2

10 free CMA (IMA) practice questions in the real exam format, covering the official content areas, with an explanation for every answer.

CMA (IMA) Practice Test 2Tutor mode

Question 1 of 10

Capital Investment Decisions

Saxton Freight must choose one of two mutually exclusive terminal upgrades. Its cost of capital is 10%, and it has no capital rationing. The project data appear below. The CFO should recommend

Saxton Freight — mutually exclusive projects
ProjectInitial investmentNPV at 10%IRR
Alpha$100,000$30,00022%
Beta$400,000$70,00016%