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NEW QUESTION: 1
PRPC applications can be built on top of other PRPC applications.
A. True
B. False
Answer: A
NEW QUESTION: 2
A venture capital investment is expected to yield of payoff of $100 million in five years if it survives.
The initial cost is $20 million and the appropriate discount rate is 20%. What is the average annual probability of failure that makes the investment's NPV = 0? In other words, what is the maximum annual average probability of failure before the investment is not acceptable?
A. 13%
B. 20%
C. 17%
Answer: A
Explanation:
The NPV is equal to zero when: Discounted expected payoff = Initial cost
[(1 - Average prob)5 $100 million] / (1.20)5 = $20 million Average annual probability = 0.1303, or 13%
NEW QUESTION: 3
What defines the requirements for a service and takes responsibility for the outcomes of service consumption?
A. A user
B. A configuration item (CI)
C. An IT asset
D. A customer
Answer: D
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