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NEW QUESTION: 1
Project A has an IRR of 10% and project B has an IRR of 12%. The crossover rate for these projects is
7.4%. You use the NPV rule for making project selections. If both the projects have a cost of capital of
6.9%, and are mutually exclusive with normal cash flows, you should:
A. select project B.
B. select neither A nor B.
C. select project A.
D. insufficient information.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The crossover rate is the discount rate at which the graphs of NPV versus discount rate for the two projects cross. Since the projects have normal cash flows, they will have a single crossover rate. Further, the project with the higher IRR has a "flatter" NPV profile. Therefore, if the cost of capital is smaller than the crossover rate, the project with the flatter profile will have a smaller NPV. Therefore, project A has a higher NPV at the cost of capital of 6.9% and should be selected over project B.
NEW QUESTION: 2
A network administrator has configured access list 173 to prevent Telnet and ICMP traffic from reaching a server with
the address of 192.168.13.26. Which commands can the administrator issue to verify that the access list is working
properly? (Choose three.)
A. Router# debug access-list 173
B. Router# ping 192.168.13.26
C. Router# show ip interface
D. Router# show access-lists
E. Router# show open ports 192.168.13.26
Answer: B,C,D
NEW QUESTION: 3
DRAG DROP
Drag the components from the list and place them in correct devices.
Select and Place:
Answer:
Explanation:
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