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NEW QUESTION: 1
Doherty Industries wants to invest in a new computer system. The company only wants to invest in one system, and has narrowed the choice down to System A and System B System A requires an up-front cost of $100,000 and then generates positive after-tax cash flows of $60,000 at the end of each of the next two years. The system can be replaced every two years with the cash inflows and outflows remaining the same. System B also requires an up-front cost of $100,000 and then generates positive after-tax cash flows of $48,000 at the end of each of the next three years. System B can be replaced every three years, but each time the system is replaced, both the cash inflows and outflows increase by 10 percent. The company needs a computer system for the six years, after which time the current owners plan on retiring and liquidating the firm. The company's cost of capital is 11 percent. What is the NPV (on a six-year extended basis) of the system, which creates the most value to the company?
A. $22,634.77
B. $38,523.43
C. $31,211.52
D. $17,298.30
E. $103,065.82
Answer: C
Explanation:
Explanation/Reference:
Explanation:
To find the NPV of the system we must use the replacement chain approach.
Time System ASystem B
0-100,000-100,000
160,00048,000
260,000 - 100,000 = -40,00048,000
360,00048,000-110,000 =-62,000
460,000 - 100,000 = -40,00052,800
560,00052,800
660,00052,800
Use the CF key to enter the cash flows for each period. I/YR = 11. This should give the following NPVs:
NPV(A) = $6,796.93.
NPV(B) = $31,211.52.
Computer system B creates the most value for the firm.

NEW QUESTION: 2
Which two business requirements have the most influence on the data center design?
(Choose two.)
A. increase network bandwidth
B. reduce data center footprint (floorspace)
C. increase cooling requirement
D. reduce power consumption
E. increase storage capacity
F. reduce virtual machine to host ratio
Answer: D,F

NEW QUESTION: 3
A network administrator configures a router with the following IP address information:
Gigabit Ethernet 1 Interface: 10.10.0.1/24
Serial 0 Interface: 10.10.0.253/30
Clients are connected to a switch on the gigabit Ethernet interface; the ISP is connected to the Serial 0 interface. When the router configuration is complete and client devices are reconfigured, all clients report that they are unable to connect to the Internet. Which of the following is the MOST likely reason?
A. The router was configured with an incorrect loopback address
B. The router was configured with an incorrect default gateway
C. The router was configured with an incorrect subnet mask
D. The router was configured with an incorrect IP address
Answer: C
Explanation:
Section: (none)