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NEW QUESTION: 1
Alabama Pulp Company (APC) can control its environmental pollution using either "Project Old Tech" or
"Project New Tech." Both will do the job, but the actual costs involved with Project New Tech, which uses unproved, new state-of-the-art technology, could be much higher than the expected cost levels. The cash outflows associated with Project Old Tech, which uses standard proven technology, are less risky--they are about as uncertain as the cash flows associated with an average project. APC's cost of capital for average risk projects is normally set at 12 percent, and the company adds 3 percent for high risk projects but subtracts 3 percent for low risk projects. The two projects in question meet the criteriafor high and average risk, but the financial manager is concerned about applying the normal rule to such cost-only projects. You must decide which project to recommend, and you should recommend the one with the lower PV of costs. What is the PV of costs of the better project?
Cash Outflows
Years:01234
Project New Tech1,500315315315315
Project Old Tech600600600600600
A. 2,422
B. 2,521
C. 2,543
D. 2,399
E. 2,457
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Recognize that (1) risky outflows must be discounted at lower rates, and (2) since Project New Tech is risky, it must be discounted at a rate of 12% - 3% = 9%. Project Old Tech must be discounted at 12%.
Tabular solution:
PV(New Tech) = -$1,500 - $315(PVIFA9%,4) = -$1,500 - $315(3.2397) = -$2,520.51. PV(Old Tech)
-$600 - $600(PVIFA12%,4) = -$600 - $600(3.0373) = -$2,422.38. PV(Old Tech) is a smaller outflow than NPV(New Tech), thus, Project Old Tech is the better project.
NEW QUESTION: 2
A. Option A
B. Option D
C. Option C
D. Option B
Answer: A
NEW QUESTION: 3
Amazon VPC에서 Amazon EC2에서 실행되는 응용 프로그램을 개발하는 동안 개발자는 응용 프로그램 수준 로그의 중앙 집중식 저장 장치에 대한 필요성을 확인합니다.
이러한 로그를 안전하게 저장하는 데 사용할 수 있는 AWS 서비스는 무엇입니까?
A. Amazon CloudSearch
B. Amazon EC2 VPC 플로우 로그
C. AWS CloudTrail
D. Amazon CloudWatch 로그
Answer: D