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NEW QUESTION: 1
Which of the following switches can provide agile features such as native AC, wired and wireless SVF, and free mobility?
A. S6720-EI
B. S5720-EI
C. S5730-SI
D. S5720-HI
Answer: D
NEW QUESTION: 2
An advantage of a continuous audit approach is that it can improve system security when used in time- sharing environments that process a large number of transactions. True or false?
A. False
B. True
Answer: B
Explanation:
Explanation/Reference:
It is true that an advantage of a continuous audit approach is that it can improve system security when used in time-sharing environments that process a large number of transactions.
NEW QUESTION: 3
Two projects being considered are mutually exclusive and have the following projected cash flows:
Year Project A Project B
0-$50,000-$50,000
115,9900
215,9900
315,9900
415,9900
515,990100,560
At what rate (approximately) do the NPV profiles of Projects A and B cross?
A. 6.5%
B. 16.5%
C. The NPV profiles of these two projects do not cross.
D. 20.0%
E. 11.5%
Answer: E
Explanation:
Explanation/Reference:
Explanation:
Solve for numerical PVIFA and PVIF and obtain corresponding interest rates from table. Project A:50,000
15,990(PVIFA(Irr,5))
3.12695 = PVIFA(IrrA,5)
IRR(A) = 18%
Project B:50,000 = 100,560(PVIF(IrrB,5)0
0.49722 = PVIF(IrrB,5)
IRR(B) = 15%
Solving for the crossover rate of 11.49% requires interpolation, which is not covered in the text. However, by using trial and error and an NPV profile drawing, the student can select the correct multiple choice answer, 11.5%. Drawing an NPV profile drawing using the calculated IRRs, and the NPVs at k = 0%, shows that there is a crossover rate. Of the responses listed in the problem, 16.5% and 20.0% are clearly too high, since the IRR(B) is 15%. At k = 6.5% the NPVs are not equal, thus 11.5% must be the correct response.