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NEW QUESTION: 1
A. Option C
B. Option B
C. Option D
D. Option A
Answer: B
Explanation:
NEW QUESTION: 2
If your customer is interested in deploying private cloud virtualization, on which sales tip should you focus?
A. The details of making WAN routing a line item in cloud infrastructure budgets
B. Add-on capabilities of WAN, such as application survivability
C. The benefits of driving WAN refresh and WAN optimization as part of data center consolidation and VXI
D. The option of WAN refresh to customer cloud application rollouts
Answer: C
NEW QUESTION: 3
Conrad Corp. has an investment project with the following cash flows:
TimeProject Cash Flows
0-$1,000
1200
2-300
3900
4-700
5600
The company's WACC is 12 percent. What is the project's modified internal rate of return (MIRR)?
A. 2.63%
B. 3.95%
C. 6.83%
D. 5.68%
E. 3.20%
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Find the present value of the outflows:
t = 0: -1,000
t = 2: N = 2, I = 12, PMT = 0, FV = 300, and solve for PV = -$239.1582.
t = 4: N = 4, I = 12, PMT = 0, FV = 700, and solve for PV = -$444.8627.
Total PV(Costs) = -$1,000 - $239.1582 - $444.8627 = -$1,684.0209.
Find the future value of the inflows:
t = 1: N = 4, I = 12, PV = -200, PMT = 0, and solve for FV = $314.7039.
t = 3: N = 2, I = 12, PV = -900, PMT = 0, and solve for FV = $1,128.96.
t = 5: N = 0, I = 12, PV = -600, PMT = 0, and solve for FV = $600.
Total FV(Inflows) = $314.7039 + $1,128.96 + $600 = $2,043.6639.
Then find the MIRR:
N = 5
PV = -1,684.0209
PMT = 0
FV = 2,043.6639
Solve for MIRR = I = 3.9471%.
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