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NEW QUESTION: 1
ABC Corp. is considering the following independent projects:
Which of the following would represent the most optimal choice?
A. Since the project A has an NPV of $23,997 and Project B has an NPV of $47,565, both should be chosen.
B. Since the project A has an NPV of $23,997 and Project B has an NPV of $2,999, both should be chosen.
C. Since the project A has an NPV of $23,997 and Project B has an NPV of $2,999, only Project A should be chosen.
Answer: B
Explanation:
Step 1. Find NPV of each project: Note: NPV= (PV of CF)-( Cost)Project A: Given:
PMT=45,000; N = 5; I = 10% -> Find: PV = 173,997 -> NPV = 173,997-150,000 = 23,997Project B: Given:
PMT=162,912; N = 5; I = 13% -> Find: PV = 572,999 -> NPV = 572,999-570,000 = 2,999Since the projects are independent and they are both positive NPVs, the optimal choice would be to choose both.
NEW QUESTION: 2
Which of the following is NOT the method of Qualitative risk analysis?
A. Business process modeling (BPM) and simulation
B. Scorecards
C. Likelihood-impact matrix
D. Attribute analysis
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Business process modeling (BPM) and simulation is a method of Quantitative risk analysis and not Qualitative risk analysis.
The BPM and simulation discipline is an effective method of identifying and quantifying the operational risk in enterprise business processes. It improves business process efficiency and effectiveness.
Incorrect Answers:
A, B, C: These three are the methods of Qualitative risk analysis.
NEW QUESTION: 3
What opt-in setting is available to clone a compensation plan?
Response:
A. Clone Eligibility rules
B. Clone Rating source
C. Clone Guidelines rules
D. Clone Budget rules
Answer: A
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