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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. $31,211.52
B. $17,298.30
C. $38,523.43
D. $103,065.82
E. $22,634.77
Answer: A
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
A healthcare services company is concerned about the growing costs of software licensing for an application for monitoring patient wellness. The company wants to create an audit process to ensure that the application is running exclusively on Amazon EC2 Dedicated Hosts. A DevOps Engineer must create a workflow to audit the application to ensure compliance. What steps should the Engineer take to meet this requirement with the LEAST administrative overhead?
A. Use AWS Systems Manager Configuration Compliance. Use calls to the put-compliance- items API action to scan and build a database of noncompliant EC2 instances based on their host placement configuration. Use an Amazon DynamoDB table to store these instance IDs for fast access. Generate a report through Systems Manager by calling the list-compliance- summaries API action.
B. Use AWS Config. Identify all EC2 instances to be audited by enabling Config Recording on all Amazon EC2 resources for the region. Create a custom AWS Config rule that triggers an AWS Lambda function by using the "config-rule-change-triggered" blueprint. Modify the Lambda evaluateCompliance () function to verify host placement to return a NON_COMPLIANT result if the instance is not running on an EC2 Dedicated Host. Use the AWS Config report to address noncompliant instances.
C. Use custom Java code running on an EC2 instance. Set up EC2 Auto Scaling for the instance depending on the number of instances to be checked. Send the list of noncompliant EC2 instance IDs to an Amazon SQS queue. Set up another worker instance to process instance IDs from the SQS queue and write them to Amazon DynamoDB. Use an AWS Lambda function to terminate noncompliant instance IDs obtained from the queue, and send them to an Amazon SNS email topic for distribution.
D. Use AWS CloudTrail. Identify all EC2 instances to be audited by analyzing all calls to the EC2 RunCommand API action. Invoke an AWS Lambda function that analyzes the host placement of the instance. Store the EC2 instance ID of noncompliant resources in an Amazon RDS MySOL DB instance. Generate a report by querying the RDS instance and exporting the query results to a CSV text file.
Answer: B
NEW QUESTION: 3
In FusionSphere OpenStack, a host with a controller role is called a control node, and a host with a compute role is called a compute node.
A. FALSE
B. TRUE
Answer: A
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