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NEW QUESTION: 1
The management of Intelligent Semiconductor is considering the creation of a new manufacturing facility.
The following information applies to the new facility:
Initial investment outlay: ($50,200,000)
t1: ($3,000,000)
t2: ($1,500,000)
t3: $12,000,000
t4: $20,000,000
t5: $25,000,000
t6: $25,000,000
t7: $20,000,000
t8: ($1,500,000)
t9: ($3,000,000)
t10: $500,000
Assuming a 15% discount rate, along with a $0.00 salvage value at the end of year 10, what is the Modified Internal Rate of Return for this project?
A. 14.61%
B. 12.66%
C. 13.90%
D. 9.88%
E. 13.19%
F. Because this is a non-normal project, the Modified Internal Rate of Return cannot be calculated.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Remember that the Modified Internal Rate of Return escapes many of the pitfalls associated with the traditional Internal Rate of Return calculation. One such pitfall is the fact that the traditional IRR cannot produce reliable calculations for "non-normal" projects, such as the project illustrated in this example. The Modified Internal Rate of Return, however, escapes this basic flaw and can be used to evaluate virtually any project. The calculation of the answer in this example is as follows:
Step 1: Determine the Future Value of the cash inflows by compounding each positive inflow by the cost of capital. This value is often referred to as the "Terminal Value." Remember that in this example, the positive cash inflows begin at period 3.
Step 2: Determine the Present Value of the cash outflows by discounting each negative inflow by the cost of capital. The cash inflows to be discounted occur in periods 1, 2, 8, and 9.
Step 3: Determine the rate that equates the PV of the cash outflows to the FV of the cash inflows. The calculation of the FV of the cash inflows is shown as follows:
FV of the cash inflows = {[$12,000,000 * 2.660] + [$20,000,000 * 2.313] + [$25,000,000 * 2.011] +
[$25,000,000 * 1.749] + [$20,000,000 * 1.521] + [$500,000 * 1]} = $203,100,000.
This is the terminal value.
The calculation of the PV of the cash outflows is calculated as follows:
PV of the cash outflows = {$50,200,000 + [$3,000,000 / 1.15] + [$1,500,000 /1.323] + [$1,500,000 / 3.059]
+ [$3,000,000 / 3.518]} = $55,285,596.07
Now that the present and future (terminal) values of the cash flows have been determined, the Modified Internal Rate of Return can take place. The following values are imputed into the Present Value worksheet on your calculator:
PV =($55,285,596), FV = $203,100,000, N = 10, PMT = $0.00, Compute I Imputing these values will yield an answer of 13.896% for the Modified Internal Rate of Return.
NEW QUESTION: 2
A 4-node cluster has connectivity for both block and file access. Nodes 1 and 3 are used for file access, and nodes 2 and 4 are used for block access. During routine maintenance, node 4 is switched off and the LIFs are migrated to other nodes. Upon investigation, you see that the LIFs that serve file traffic have moved to alternative ports.
However, LIFs that serve the block have not migrated. In this scenario, what is happening?
A. The failover group is configured incorrectly.
B. The LIFs that serve the block protocol do not failover.
C. There is a faulty SFP.
D. The fiber switch is configured incorrectly.
Answer: B
NEW QUESTION: 3
Northern Trail Outfitters has two sales divisions; * An individual sales division, and * A business sales division The Sales representatives for each division have their own user profiles and person accounts. The business sales division sales representatives cannot create person accounts and they should only be able to set up business accounts. How can these requirements be met?
A. Use Divisions to hide person accounts from the business sales division's sales presentative user profile
B. Use field-level security to hide "Is Person Account" checkbox from the business sales division's sales representative user profile
C. Remove person account record types from the business sales division's sales presentative user profile.
D. Check the "disable person accounts" permission on the business sales division's sales representative user profile
Answer: C
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