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NEW QUESTION: 1
The Moore Corporation is considering the acquisition of a new machine. The machine can be purchased
for $90,000; it will cost $6,000 to transport to Moore's plant and $9,000 to install. It is estimated that the
machine will last 10 years, and it is expected to have an estimated salvage value of $5,000. Over its
1 0-year life, the machine is expected to produce 2,000 units per year with a selling price of $500 and
combined material and labor costs of $450 per unit. Federal tax regulations permit machines of this type
to be depreciated using the straight-line method over 5 years with no estimated salvage value. Moore has
a marginal tax rate of 40 percent.
What is the net cash flow for the third year that Moore Corporation should use in a capital budgeting
analysis?
A. $53,700
B. $47,400
C. $64,200
D. $68,400
Answer: D
Explanation:
Choice "a" is correct. $68,400 net cash flow for the third year.

Alternate Computation:
In year 3, Moore will generate a $100,000 profit from the incremental sales (2000 units * ($500 -$450)).
This profit will be taxed at 40%, so the net after-tax increase in cash flow is $60,000 BEFORE the
depreciation tax shield is considered. Depreciation is not a cash outflow, but it will reduce the amount of
tax the company has to pay (by 40% of the depreciation), and this has an effect on the cash-flow for the
company. Depreciation, as calculated above, is $21,000 per year ($105,000 cost of the machine divided
by 5 years). The depreciation tax shield is $8,400 ($21,000 * 40%), so the total after-tax cash flows in
year 3 for the new machine is $60,000 + $8,400 = $68,400.

NEW QUESTION: 2
Privilege creep among long-term employees can be mitigated by which of the following procedures?
A. User permission reviews
B. Mandatory vacations
C. Separation of duties
D. Job function rotation
Answer: A
Explanation:
Privilege creep is the steady build-up of access rights beyond what a user requires to perform his/her task. Privilege creep can be decreased by conducting sporadic access rights reviews, which will confirm each user's need to access specific roles and rights in an effort to find and rescind excess privileges.
Incorrect Answers:
B. Mandatory vacations require each employee to be on vacation for a minimal amount of time each year. During this time a different employee sits at their desk and performs their work tasks.
C. Separation of duties divides administrator or privileged tasks into separate groupings.
D. Job function rotation allows for employees to be knowledgeable about another employee's job function in the event that an employee is sick or on vacation.
References:
Stewart, James Michael, CompTIA Security+ Review Guide, Sybex, Indianapolis, 2014, pp. 81, 82, 294

NEW QUESTION: 3
Refer to the exhibit.

Which feature is enabled by this configuration?
A. a DHCP pool
B. a dynamic NAT address pool
C. PAT
D. static NAT translation
Answer: B

NEW QUESTION: 4
Why utilize Account Teams and Sales Teams?
Answer:
Explanation:
Teams are
used for collaboration,
sharing, and for
reporting purposes.

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