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  • Exam Name:Databricks Certified Data Analyst Associate Exam Exam Exam
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NEW QUESTION: 1
Norine Benson is studying for the Level 1 CFA examination and is having difficulty with the broader concepts of capital budgeting. Her study partner, Henri Manz, tests her understanding by asking her to identify which of the following statements is TRUE?
A. If the change in current liabilities is greater than the change in current assets, it means that additional financing was needed and there is a cash outflow.
B. An analyst can ignore inflation since price level expectations are built into the weighted average cost of capital (WACC).
C. For mutually exclusive projects, the decision rule is to pick the project that has the highest net present value (NPV).
D. Replacement decisions involve mutually exclusive projects.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Because replacement decisions involve either keeping the old asset or replacing the old asset, the projects are mutually exclusive.
The decision rule for NPV is to pick the project with the highest positive NPV. Only projects with positive NPV add to the company's value. If a neither project has a positive NPV, neither project should be chosen.
The statement about net working capital (NWC) is stated in the reverse of how we usually think of it:ꢀin NWC =ꢀCurrent Assets -ꢀCurrent Liabilities. Here, the change in current liabilities exceeds the change in current assets and the result is negative, meaning the project frees up cash, creating a cash inflow.
Because the WACC is adjusted for inflation, the analyst must adjust project cash flows upward to reflect inflation. If the cash flows are not adjusted for inflation, the NPV will be biased downward. (Reverse the preceding logic for deflation.)

NEW QUESTION: 2
Die Datensätze für physische Proben werden entweder automatisch bei der Erstellung des Prüflos oder manuell erstellt.
A. Richtig
B. Falsch
Answer: A

NEW QUESTION: 3







A. Option B
B. Option A
Answer: A
Explanation:
References:

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