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NEW QUESTION: 1
Which of the following projects would likely result in multiple Internal Rates of Return?
Project A
Initial investment outlay: ($450,000)
t1: $400,000
t2: ($40,000)
t3: $190,000
Project B
Initial investment outlay: ($50,000)
t1: $0.00
t2: $0.00
t3: $75,000
Project C
Initial investment outlay: ($300,000)
t1: $15,000
t2: ($34,000)
t3: $0.00
t4: $400,000
Project D
Initial investment outlay: ($100,000)
t1: $150,000
t2: $380,000
t3: $45,000
t4: $45,000
Project E
Initial investment outlay: ($1,000,000)
t1: $1,500,000
t2: $1,300
t3: $0.00
t4: $60,000
A. Project D, Project E
B. Project B, Project D
C. Project A, Project C,
D. Project C, Project E
E. None of these choices
F. The answer cannot be determined from the information provided
Answer: C
Explanation:
Explanation/Reference:
Explanation:
In evaluating projects with "non-normal cash flows" the Internal Rate of Return method will often produce multiple IRRs which leads to an incorrect accept/reject decision. Non-normal cash flows are defined as cash flows in which the sign changes more than once. Projects A, and C involve cash outflows superimposed within their cash inflows, resulting in a sign change from positive to negative and negative to positive. In examining projects such as these, it is advisable to use either the NPV or MIRR methods, which are not subject to the problem of multiple IRRs. From observation alone, we can determine that project A and C are non-normal projects, and are thus likely to result in multiple IRR calculations. While project B, D, and E have periods of zero cash flow, they have only one change of sign in the overall cash flow process, and therefore should be characterized as "normal." While the cost of capital has been provided, it is not necessary for the determination of the correct answer in this case. What you should look for are projects with non-normal cash flows, and this should not involve any computational analysis.
Besides, the cost of capital is not incorporated into the Internal Rate of Return calculation, rather is a component of the NPV and MIRR.
NEW QUESTION: 2
Which criteria is used by AVM when selecting dVols from a traditional RAID group to create a pool entry?
A. LUNs must come from the same RAID groups have the same size and RAID configuration, cannot be more than 16TB in size.
B. LUNs must come from different RAID groups, have the same RAID configuration, cannot be more than
16TB in size.
C. LUNs must come from the same RAID groups, have the same RAID configuration cannot be more than
14TB in size.
D. LUNs must come from different RAID groups, have the same size and RAID configuration, cannot be more than 14TB in size.
Answer: D
NEW QUESTION: 3
A. netstat
B. ipconfig
C. dig
D. ping
E. tracert
Answer: B
Explanation:
Explanation
The ipconfig command displays the TCP/IP configuration of a Windows system. The ipconfig /all command displays the system's TCP/IPconfiguration in detail. This output includes whether DHCP is enabled or not.