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NEW QUESTION: 1
A. Option A
B. Option C
C. Option B
D. Option D
Answer: B
NEW QUESTION: 2
Print three copies of this web page using the current settings.
A. File -> print -> in the number of copies select 3 -> click print
Answer: A
NEW QUESTION: 3
Which is the most common control used for Risk Transfer?
A. Web Application Firewall
B. Insurance
C. Contracts
D. SLA
Answer: B
Explanation:
Buying insurance is most common method of transferring risk.
NEW QUESTION: 4
Projects L and S each have an initial cost of $10,000, followed by a series of positive cash inflows. Project L has total, undiscounted cash inflows of $16,000, while S has total undiscounted inflows of $15,000.
Further, at a discount rate of 10 percent, the two projects have identical NPVs. Which project's NPV will be more sensitive to changes in the discount rate?
A. Both projects are equally sensitive to changes in the discount rate since their NPVs are equal at all costs of capital.
B. Project S.
C. Neither project is sensitive to changes in the discount rate, since both have NPV profiles which are horizontal.
D. Project L.
E. The solution cannot be determined unless the timing of the cash flows is known.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The NPV profile plots a project's NPV against the discount rates. The higher the undiscounted inflows, the steeper the NPV profile, and the steeper the NPV profiles, the more sensitive the project is to discount rate changes.