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NEW QUESTION: 1
The Mike & Laurie Consulting Group Inc. is trying to decide which computer system to purchase. They can purchase state-of-the-art equipment for $20,000, which they expect to generate cash flows of $6,000 at the end of each of the next 6 years. Alternatively, they can spend $12,000 for equipment that can be used for 3 years and generates cash flows of $6,000 at the end of each year. If the company'scost of capital is 10 percent and both "projects" can be repeated indefinitely, then what is the equivalent annual annuity (EAA) of the more profitable strategy?
A. $1,666.67
B. $1,174.62
C. $2,423.74
D. $6,131.56
E. $1,407.85
Answer: E
Explanation:
Explanation/Reference:
Explanation:
First, compute the NPV of each project over its initial life. The relevant cash flows for the state-of-the- art equipment are CF(0) = -$20,000 and CF(1-6) = $6,000. Discounting at 10 percent yields NPV = $6,131.56.
The relevant CFs for the less advanced equipment are CF(0) = -$12,000 and CF(1-3) = $6,000.
Discounting again at 10 percent yields NPV = $2,921.11. Next, find the EAA of each project as follows:
EAA for the state-of-the-art equipment: N = 6; I/YR = 10; PV = -6,131.56, FV = 0; solve for PMT = EAA
$1,407.85. EAA less advanced: N = 3; I/YR = 10; PV = $2,921.11; FV = 0; solve for PMT = EAA
$1,174.62.
Thus, the state-of-the-art project is more profitable.
NEW QUESTION: 2
How many releases a year does Sales force typically deliver?
A. 0
B. Depends on the roadmap
C. 1
D. 2
E. 3
Answer: E
Explanation:
Explanation/Reference:
Explanation/Reference: 3 releases are issued per year. Spring, Slimmer, Winter All are distributed automatically during a pre-scheduled maintenance window.
NEW QUESTION: 3
How does partition pruning, a 11gR2 database feature, help to improve performance on an
Exadata Database Machine?
A. Partition pruning allows you to reduce the size of the physical table by reducing fragmentation within the individual tables.
B. Partition pruning allows you to reduce a 5 TB I/O operation to a much smaller I/O operation and therefore, enables a much faster return of information.
C. Using partition pruning can force the optimizer to use that method instead of Smart
Scan. Partitioning in Exadata should be used wisely
D. Partition pruning is not a supported option in the 11gR2 database code that runs on an
Exadata Machine, due to issues with Cost Based Optimizer plans.
E. Partition pruning allows you to reduce a 5 TB I/O operation to a larger I/O operation and therefore, forces the use of the Smart Scan technology.
Answer: B