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NEW QUESTION: 1
Assume the following information about two individual projects.
Project A
Initial cash outflow: $175,000
Expected cash inflows
t1: $75,000
t2: $65,000
t3: $35,000
t4: $35,000
t5: $15,000
Project B
Initial cash outflow: $100,000
Expected cash inflows
t1: $15,000
t2: $15,000
t3: $18,000
t4: $45,000
t5: $45,000
Assuming these projects are not mutually exclusive, and the cost of capital is 10%, which of the two should be undertaken according to NPV? Additionally, which of the two projects has the steeper NPV profile?
A. Project A should be accepted, project A has a steeper NPV profile
B. Project B should be accepted, project B has a steeper NPV profile
C. Project B should be accepted, project A has a steeper NPV profile
D. Both projects should be accepted, project A has a steeper NPV profile
E. Project A should be accepted, project B has a steeper NPV profile
F. Neither project should be accepted, project B has a steeper NPV profile
Answer: E
Explanation:
Explanation/Reference:
Explanation:
The NPV of project B is found to be ($1,766.21), and thus should not be accepted. However, project A has a positive NPV of $6,416.14, and should be accepted. Project B is characterized as having the majority of its cash inflows occurring in later time periods, and thus is more sensitive to changes in the cost of capital.
This is exemplified by a steeper NPV profile for project B.

NEW QUESTION: 2
Which option describes the effect of the command ip route vrf DMZ
192.168.0.0.255.255.0.0
172.16.5.5 global?
A. It creates a s1atic route in the global routing for 192.168.0.0 255.255.0.0, and the next hop is in
The VRF DMZ.
B. lt creates a static route in the VRF DMZ for 192.168.0.0 255.255.0.0, and the next hop is in the
VRFDMZ.
C. It creates a s1atic default route in the "lh1 DMZ, and the next hop is in the global routing table.
D. It creates a static route in the VRF DMZ for 192.168.0.0 255.255.0.0, and the next hop is in the
global routing table.
E. It creates a static route in the global routing table for 192.168.0.0 255.255.0.0, and the next hop
is in the global routing table.
Answer: D

NEW QUESTION: 3

A. Option C
B. Option A
C. Option B
Answer: A,B