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NEW QUESTION: 1
Alabama Pulp Company (APC) can control its environmental pollution using either "Project Old Tech" or
"Project New Tech." Both will do the job, but the actual costs involved with Project New Tech, which uses unproved, new state-of-the-art technology, could be much higher than the expected cost levels. The cash outflows associated with Project Old Tech, which uses standard proven technology, are less risky--they are about as uncertain as the cash flows associated with an average project. APC's cost of capital for average risk projects is normally set at 12 percent, and the company adds 3 percent for high risk projects but subtracts 3 percent for low risk projects. The two projects in question meet the criteriafor high and average risk, but the financial manager is concerned about applying the normal rule to such cost-only projects. You must decide which project to recommend, and you should recommend the one with the lower PV of costs. What is the PV of costs of the better project?
Cash Outflows
Years:01234
Project New Tech1,500315315315315
Project Old Tech600600600600600
A. 2,521
B. 2,422
C. 2,399
D. 2,457
E. 2,543
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Recognize that (1) risky outflows must be discounted at lower rates, and (2) since Project New Tech is risky, it must be discounted at a rate of 12% - 3% = 9%. Project Old Tech must be discounted at 12%.
Tabular solution:
PV(New Tech) = -$1,500 - $315(PVIFA9%,4) = -$1,500 - $315(3.2397) = -$2,520.51. PV(Old Tech)
-$600 - $600(PVIFA12%,4) = -$600 - $600(3.0373) = -$2,422.38. PV(Old Tech) is a smaller outflow than NPV(New Tech), thus, Project Old Tech is the better project.

NEW QUESTION: 2
Which of the following statements regarding Sqoop is TRUE? (Choose two.)
A. Sqoop bypasses MapReduce for enhanced performance
B. Each row from a source table is represented as a separate record in HDFS
C. When using a password file, the file containing the password must reside in HDFS
D. All columns in a table must be imported
E. Multiple options files can be specified when invoking Sqoop from the command line
Answer: B,E

NEW QUESTION: 3
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A. in the dictionary
B. in work processes
C. in ble "nameb"
D. in structures
Answer: C