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Dana Leone, Level 2 candidate in the CFA Program, is a manager in the capital planning division of a large consumer products company. Today, she must decide whether to recommend Project Forrest or Project Trieste to the Division Director. Leone's assistant has determined the following information about the projects (which are of approximately the same size and life):

Note:NPV = Net Present Value
MIRR = Modified Internal Rate of Return
PBP = Pay Back Period
WACC = Weighted Average Cost of Capital
Based on the information in the above table, which of the following statements is FALSE? If company management is most concerned with:
A. increasing the value of the firm, Leone should recommend Project Forrest.
B. liquidity, Leone should recommend Project Trieste.
C. shareholder interests, Leone should recommend Project Trieste.
D. return safety margin, Leone should recommend Project Forrest.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Since Leone can recommend either Forrest or Trieste, this question should be answered using the decision rules for mutually exclusive projects. For a company most interested in shareholder wealth and increasing the value of the firm (which are the same concept), Project Trieste is best because it has the higher NPV. NPV is the measure that indicates the direct impact on shareholder wealth. The other statements are true. The PBP measures liquidity, i.e., the shorter the PBP, the higher the liquidity.The IRR method does provide a measure of safety margin (and Project Forrest does have the highest IRR).

NEW QUESTION: 2
Which statement correctly compares traditional networks and controller-based networks?
A. Traditional and controller-based networks abstract policies from device configurations
B. Only traditional networks offer a centralized control plane
C. Only controller-based networks decouple the control plane and the data plane
D. Only traditional networks natively support centralized management
Answer: C
Explanation:
Explanation
Most traditional devices use a distributed architecture, in which each control plane is resided in a networking device. Therefore they need to communicate with each other via messages to work correctly.In contrast to distributed architecture, centralized (or controller-based) architectures centralizes the control of networking devices into one device, called SDN controller

NEW QUESTION: 3
Your home computer is having problems accessing the Internet.
You suspect that your Internet router's DHCP service is not functioning, so you check your computer's IP address.
Which address indicates that your router's DHCP service is NOT functioning?
A. 10.19.1.15
B. 192.168.1.15
C. 169.254.1.15
D. 172.16.1.15
Answer: D

NEW QUESTION: 4
CORRECT TEXT
What would be printed, if anything, to SYSPRINT after executing the following code?
DCLA CHAR(5) INIT('1000');
DCL B PlC 'S99999' INIT(2000);
B = A + B;
PUT SKIP LIST('THE VALUE OF B IS:' !! B);
A. THE VALUE OF B IS :+ 3000
B. Nothing will be printed because CONVERSION would be raised.
C. THE VALUE OF B IS :+03000
D. THE VALUE OF B IS:
Answer: C

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