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NEW QUESTION: 1
Which of the following projects is likely to produce multiple Internal Rates of Return.
Project A
Initial investment outlay: ($1,000,000)
t1: $0.00
t2: $0.00
t3: $0.00
t4: $0.00
t5: $0.00
t6: $10,000,000
Project B
Initial investment outlay: ($1,000,000)
t1: $500,000
t2: $500,000
t3: $500,000
t4: $0.01
Project C
Initial investment outlay: ($1,000,000)
t1: $800,000
t2: ($100,000)
t3: $550,000
Project D
Initial investment outlay: ($500,000)
t1: $400,000
t2: ($1,000)
t3: $230,000
t4: ($50,000)
A. Project A
B. Project C
C. Project B
D. Project A, C and D
E. Project C and D
F. Project D
Answer: B
Explanation:
Explanation/Reference:
Explanation:
In evaluating projects with "non-normal cash flows" the Internal Rate of Return method will often produce multiple IRRs calculation 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 C and D 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 this, it is advisable to use either the NPV or MIRR methods, which are not subject to the problem of multiple IRRs associated with the traditional IRR method. From observation alone, we can determine that project C and D are non-normal projects, and are thus likely to result in multiple IRRs. While project A is somewhat unusual in the fact that the first five periods produce no cash flows at all, there is only one sign change present in its cash flows, and thus is characterized as a
"normal" project.
NEW QUESTION: 2
A company has two locations in the same city. Both locations need only general ledger, accounts payable, and accounts receivable functionality. The company wants to implement one product that can manage transactions and consolidate financials at year-end.
You need to recommend a solution for the company.
What should you recommend? To answer, select the appropriate option in the answer area.
Answer:
Explanation:
NEW QUESTION: 3
Which feature is described below:
You can use the ___ to reduce the number of duplicate blocks of data in storage, you can store much more data in a given amount of storage capacity than was possible in previous releases that used Single Instance Storage (SIS) or NTFS file system compression.
A. iSCSI Target Boot
B. iSCSI Target Server
C. Data Deduplication role service
D. Multiterabyte Volumes
Answer: C
Explanation:
Explanation/Reference:
Explanation:
By using Data Deduplication, general purpose file servers can typically reduce storage capacity utilization by a 2:1 ratio (for example, files that previously used 1 TB would use 500 GB after deduplication). Servers that host virtualization data (such as VHD files) often reduce storage capacity utilization by a 20:1 ratio, which reduces 1 TB of data to 50 GB.
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