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NEW QUESTION: 1
Cepeda Corporation requires a computer system for the next ten years, and is in the process of choosing among two mutually exclusive alternatives. System A costs $50,000 today, and will produce positive net cash flows of $12,000 a year for the next ten years (t = 1 through t = 10). System B costs $30,000 today and will produce positive net cash flows of $11,000 a year for the next five years. After five years, System B can be replaced under the same terms. The company's cost of capital is 10 percent. What is the equivalent annual annuity (EAA) of the best system?
A. $2,373.48
B. $3,862.73
C. $6,261.18
D. $3,086.07
E. $5,002.39
Answer: B
Explanation:
Explanation/Reference:
Explanation:
First find the NPV's of each system over its initial life.
System A: CF(0) = -50,000; CF(1-10)= 12,000; I = 10; solve for NPV = $23,734.81. System B: CF(0) = -
30,000; CF(1-5)= 11,000; I = 10, solve for NPV = $11,698.65. Second, find the value of the EAA of each system.
System A: N = 10; I = 10; PV = -23,734.81; FV = 0; solve for PMT = EAA = $3,862.73. System B: N = 5; I
10; PV = -11,698.65; FV = 0; solve for PMT = EAA = $3,086.07. Given System A has a higher EAA, it is the better of the two systems.
NEW QUESTION: 2
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A. Option A
B. Option C
C. Option E
D. Option D
E. Option B
Answer: A,E
NEW QUESTION: 3
You've adjusted the options for a number of tools but now want to return them all to their defaults. How do you do so?
A. In the Tool Preset picker, right-click any presets and choose Delete Tool Preset.
B. In the Tool Preset panel, right-click any presets and choose Delete Tool Preset.
C. On the options bar, right-click the Tool Preset picker and choose Reset All Tools.
D. On the options bar, right-click the Tool Preset picker and choose Reset Tool.
Answer: C
NEW QUESTION: 4
All computers on your company network run Windows 7.
Several support requests have been made by employees who have recently had hardware upgrades to their computers. Each request states that the employee's computer restarts automatically at random times.
You examine one of the computers and verify the following information:
-
Only approved applications and processes are run on the computer.
-
All updates to the operating system and applications have been applied to the computer.
-
No malicious software is found on the computer.
You need to find out why the computers are restarting automatically.
What should you do?
A. Run the Check for performance issues Control Panel tool.
B. Run the Windows Memory Diagnostic tool.
C. Run the fixmbr command from the Recovery Console.
D. Run the fixboot command from the Recovery Console.
Answer: B
Explanation:
EExplanation:
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