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NEW QUESTION: 1
Racklyn Paint Company, a new paint and construction company, has vendor payables of $2 million due periodically over the next 3 months; payroll payable to its crews of $500K each month; a mortgage of $4.4 million with a fixed rate of 6.0%; and an equipment loan of $5 million with a bank at a 30-day LIBOR plus 150 bp payment of $100K due monthly. Racklyn receives their first contract valued at $12 million with half of the contract value due at the time of contract and final payment upon completion. Racklyn expects the job to last 6 months. Which option would be the BEST use of Racklyn Paint Company's cash?
A. Invest $4 million in a CD at 2.5% for 3 months.
B. Pay off the mortgage and invest remaining funds in a 6-month CD at 2.5%.
C. Prepay a portion of the equipment loan to minimize interest rate risk.
D. Pay current payables and invest any excess cash in a money market account earning 1.5%.
Answer: D

NEW QUESTION: 2
Two OSPF neighbor routers are stuck in the EXSTART state. After a while, the neighborship goes down. A network engineer is debugging the issue when both routers show the OSPF log message "too many retransmissions." What is the possible root cause?
A. interface network type mismatch
B. interface MTU mismatch
C. OSPF area mismatch
D. OSPF hello-interval mismatch
Answer: B

NEW QUESTION: 3
A labor union contract negotiation is delaying the completion of a project to build a new manufacturing plant. Because the labor contract was due for renewal this year, the project manager documented the negotiation process as a risk to the project. The project was about to start the first phase of equipment installation at the plant when the negotiation began.
How should the project manager address the situation?
A. Acquire contract resources and submit a change request for the cost impact.
B. Log the issue and follow the planned actions in the risk response plan.
C. Meet with the project team to determine options for risk mitigation.
D. Escalate the issue to the steering committee to ask for mitigation support.
Answer: B