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NEW QUESTION: 1
The Mike & Laurie Consulting Group Inc. is trying to decide which computer system to purchase. They can purchase state-of-the-art equipment for $20,000, which they expect to generate cash flows of $6,000 at the end of each of the next 6 years. Alternatively, they can spend $12,000 for equipment that can be used for 3 years and generates cash flows of $6,000 at the end of each year. If the company'scost of capital is 10 percent and both "projects" can be repeated indefinitely, then what is the equivalent annual annuity (EAA) of the more profitable strategy?
A. $6,131.56
B. $1,666.67
C. $2,423.74
D. $1,174.62
E. $1,407.85
Answer: E
Explanation:
Explanation/Reference:
Explanation:
First, compute the NPV of each project over its initial life. The relevant cash flows for the state-of-the- art equipment are CF(0) = -$20,000 and CF(1-6) = $6,000. Discounting at 10 percent yields NPV = $6,131.56.
The relevant CFs for the less advanced equipment are CF(0) = -$12,000 and CF(1-3) = $6,000.
Discounting again at 10 percent yields NPV = $2,921.11. Next, find the EAA of each project as follows:
EAA for the state-of-the-art equipment: N = 6; I/YR = 10; PV = -6,131.56, FV = 0; solve for PMT = EAA
$1,407.85. EAA less advanced: N = 3; I/YR = 10; PV = $2,921.11; FV = 0; solve for PMT = EAA
$1,174.62.
Thus, the state-of-the-art project is more profitable.

NEW QUESTION: 2
Which event types in SAP Ariba Sourcing can be configured to allow competition so that suppliers can see their bid rank or the current lead bid?
A. Request for proposal
B. Reverse Auction
C. Request for Information
D. Qick Quote posting
Answer: A,B

NEW QUESTION: 3
During a case review, the legal team notices there are missing confirmations to a Legal Hold Notice containing a mandatory survey on a System Admin notice and a Custodian Notice. The legal team needs to send a notice to the manager of the System Admin and to the custodians requesting they complete the survey.
Which Legal Hold workflow should the legal team perform?
A. send a reminder to the manager of the System Admin, and send an escalation to the custodians
B. add the manager of the System Admin as a custodian and send a reminder notice to the custodians
C. send an escalation to the manager of the System Admin, and send a reminder to the custodians
D. send a new System Admin notice to the manager of the System Admin, and send a new Custodian Notice to the custodians
Answer: C

NEW QUESTION: 4
You have a computer that runs Windows 8. You have a 1-terabyte external hard drive. You purchase a second 1-terabyte external hard drive.
You need to create a fault-tolerant volume that includes both external hard drives. You also need to ensure that additional external hard drives can be added to the volume.
Which three actions should you perform in sequence? (To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.)
Select and Place:

Answer:
Explanation: