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NEW QUESTION: 1
Intelligent Semiconductor, a diversified technology company, is considering two mutually-exclusive projects. Assume the following information:
Project A
Initial cash outlay: ($500,000)
t1: $125,000
t2: $125,000
t3: $155,000
t4: $285,000
Cost of capital 11.35%
Project B
Initial cash outlay ($395,000)
t1: $170,000
t2: $160,000
t3: $175,000
Cost of capital 11.35%
Assuming no taxes, a $0.00 salvage value at the end of each projects' life, and the ability for each project to be replicated identically, identify the superior project according to the Replacement Chain approach.
Additionally, what is the NPV and IRR of the superior project over the common life?
A. Project A, NPV $18,954.46, IRR 10.33%
B. Project A, NPV $22,256.14, IRR 12.22%
C. Project B, NPV $25,577.90, IRR 13.30%
D. Project B, NPV $35,417.16, IRR 13.30%
E. The Replacement Chain approach cannot be applied to these projects.
F. Project B, NPV $35, 417.16, IRR 15.67%
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The Replacement Chain, or "Common Life" approach, is a useful analysis method which allows two or more projects with unequal lives to be examined. In the Replacement Chain approach, the lifespans of each project being examined are multiplied in such a way that the resulting projects share a "common life." In this example, Project A has a lifespan of 4 periods, whereas Project B has a lifespan of 3. The common multiple of both is 12, and to transform each project into one which has a twelve period lifespan, multiply project A by 3 and Project B by 4. Doing so will result in the following series of cash flows for Project A:
Project A
t0 ($500,000)
t1: $125,000
t2: $125,000
t3: $155,000
t4: [$285,000 + ($500,000)]=($215,000)
t5: $125,000
t6: $125,000
t7: $155,000
t8: [$285,000 + ($500,000)]=($215,000)
t9: $125,000
t10 $125,000
t11: $155,000
t12: $285,000
Multiplying project B by 4 will result in the following cash flows: t0 ($395,000) t1: $170,000 t2: $160,000
t3: [$175,000 + ($395,000)]=($220,000)
t4: $170,000
t5: $160,000
t6: [$175,000 + ($395,000)]=($220,000)
t7: $170,000
t8: $160,000
t9: [$175,000 + ($395,000)]=($220,000)
t10: $170,000
t11: $160,000
t12 $175,000
Solving for NPV and IRR will determine that Project B is superior on both figures, with an NPV of
$35,417.16, and an IRR of 13.301%. Project A has a NPV of $22,256.14 and an IRR of 12.22%.
NEW QUESTION: 2
コンテナの利点を説明しているステートメントはどれですか？
A. コンテナは、基盤となるコンピューティング能力、メモリ、およびストレージのスライスを、その制御下にある各ポッドに割り当てます
B. コンテナーは、負荷分散、自動スケーリング、およびダウンタイムゼロのデプロイメントを提供します
C. コンテナは、継続的デリバリーを実装することにより、オンデマンドでソフトウェアをリリースするのに役立ちます
D. コンテナは、小さくて高速でポータブルなソフトウェアユニットを定義し、分離を提供します
Answer: A
NEW QUESTION: 3
Click the Exhibit button.
Referring to the exhibit, which two statements are true? (Choose two.)
A. MPLS must be enabled on P1, P2, PE-1, and PE-2.
B. A BGP full mesh is only required between PE-1 and PE-2.
C. MPLS must only be enabled on PE-1 and PE-2.
D. A BGP full mesh is required between P1, P2, PE-1, and PE-2.
Answer: A,B
Explanation:
Explanation/Reference:
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