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NEW QUESTION: 1
The management of Intelligent Semiconductor is considering two mutually exclusive projects, which are detailed below:
Project A
Electron looping apparatus
Initial investment outlay ($6,000,000)
t1: $2,750,000
t2: $1,250,000
t3: $1,250,000
t4: $2,750,000
Cost of capital of 10.55%
Project B
Optical switching apparatus
Initial investment outlay ($5,040,000)
t1: $1,000,000
t2: $1,000,000
t3: $1,500,000
t4: $1,500,000
t5: $1,500,000
t6: $750,000
t7: $300,000
t8: $50,000
Cost of capital of 10.55%
Assuming no taxes, a $0.00 salvage value at the end of the each project's life, as well as the ability to replicate each project identically at the end of its lifespan, which is the superior investment according to the Common Life approach? Additionally, what are the NPV and IRR of the superior project over the common life?
A. Project A, NPV $465,515; IRR 12.78%
B. Project B, NPV $305,221; IRR 13.65%
C. None of these answers
D. Project A, NPV $462,038; IRR 12.72%
E. Project B, NPV $287,725.32; IRR 12.38%
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The Replacement Chain, or "Common Life" approach, is a useful method which allows two or more projects with unequal lives to be examined. In the Replacement Chain approach, the lifespans of each project being examined are multiplied in such a way that the resulting projects share a "common life." In this example, the Optical Switching apparatus has a lifespan of eight periods, while the electron looping apparatus has a four-period lifespan. The common multiple of both projects is 8, and by replicating the cash flows of the electron looping project through period 4, i.e. by carrying out the project for an additional cycle, we can arrive at a "common life" for both projects. Carrying out the electron-looping project through eight periods will yield the following series of cash flows:
Electron looping apparatus
t0: ($6,000,000)
t1: $2,750,000
t2: $1,250,000
t3: $1,250,000
t4: [$2,750,000 + ($6,000,000)]=($3,250,000)
t5: $2,750,000
t6: $1,250,000
t7: $1,250,000
t8: $2,750,000
By incorporating these cash flows into your calculator, you will find a NPV of $462,038 for this project, as well as an IRR of 12.72%. The Optical Switching apparatus has a NPV of $287,725 and an IRR of 12.38%.

NEW QUESTION: 2
You view Compliance Manager as shown in the following exhibit.

Use the drop-down menus to select the answer choice that completes each statement based on the information presented in the graphic.
NOTE: Each correct selection is worth one point.

Answer:
Explanation:

Explanation

Reference:
https://docs.microsoft.com/en-us/office365/securitycompliance/meet-data-protection-and-regulatory-reqs-using-m

NEW QUESTION: 3
There are 6 predefined SNP planning areas.
What is the common feature of all 6 planning areas?
A. All planning area order key figures have an order category assignment.
B. All planning areas except 9ASNP01 have order key figures.
C. All planning areas are linked to one planning object structure.
D. All planning areas have time series.
Answer: B