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Exam Code: IIA-CIA-Part1
Exam Name: Essentials of Internal Auditing
Vendor: IIA

60 Questions & Answers
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NEW QUESTION: 1
Doering Computers is considering two mutually exclusive projects. Their cash flows are shown below:
tProj. A Cash FlowsProj. B Cash Flows
0-$500-$700
1200 250
2400 475
3100 125
4----225
The company's cost of capital (WACC) is 10 percent. Each of the projects can be repeated. What is the equivalent annual annuity (EAA) of the project, which adds the most to shareholder value?
A. $52.82
B. $25.41
C. $35.20
D. $61.64
E. $63.45
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Find NPV of each project.
NPV(A) = $87.5282.
NPV(B) = $167.4271.
Find EAA:
For Project A:
N = 3; I = 10; PV = -87.5282; FV = 0; solve for PMT = EAA = $35.1964.
For Project B:
N = 4; I = 10; PV = -167.4271; FV = 0; solve for PMT = EAA = $52.8184.

NEW QUESTION: 2
ARC Media receives thousands of files every day from many sources. Each text-formatted files is typically 1 2 MB in size. They need to store all these files for at least two years. They heard about Hadoop and about the HDFS files system, and want to take advantage of the cost effective storage to store the vast number of files.
Which two recommendations could you provide to the customer to maintain the effectiveness of HDF5 with the growing number of files?
A. Use compression to free up space.
B. Consider adding additional Name Nodes to Increase data storage capacity.
C. Reduce the memory available for name node as 1-2 MB files don't need a lot of memory.
D. Consider concatenating files after Ingesting
E. Consider breaking down files into smaller files before Ingesting
Answer: A,E

NEW QUESTION: 3
What are two requirements of United States financial institutions when conducting business with an international institution as a result of the USA PATRIOT Act? (Choose two.)
A. Complying with Special Measures issued under the USA PATRIOT Act
B. Performing enhanced due diligence on shell banks
C. Performing due diligence on correspondent accounts
D. Visiting the head office of the international financial institution
Answer: A,B


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