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NEW QUESTION: 1
Lugar Industries is considering an investment in a proposed project which requires an initial expenditure of
$100,000 at t = 0. This expenditure can be depreciated at the following annual rates:
tDepreciation Rate
120%
232%
319%
412%
511%
66%
The project has an economic life of six years. The project's revenues are forecasted to be $90,000 a year.
The project's operating costs (not including depreciation) are forecasted to be $50,000 a year. After six years, the project's estimated pre-tax salvage value is $10,000. The company's WACC is 10 percent, and its corporate tax rate is 40 percent. What is the project's net present value (NPV)?
A. $34,667
B. $31,684
C. $45,453
D. $38,840
E. $33,843
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The cash flows for each of the years are as follows:
0-100,000
1 [90,000 - 50,000 -(100,000)(0.20)](1-0.4)+(100,000)(0.20)= 32,000
2 [90,000 - 50,000 -(100,000)(0.32)](1-0.4)+(100,000)(0.32)= 36,800
3 [90,000 - 50,000 -(100,000)(0.19)](1-0.4)+(100,000)(0.19)= 31,600
4 [90,000 - 50,000 -(100,000)(0.12)](1-0.4)+(100,000)(0.12)= 28,800
5 [90,000 - 50,000 -(100,000)(0.11)](1-0.4)+(100,000)(0.11)= 28,400
6 [90,000 - 50,000 -(100,000)(0.06)](1-0.4)+(100,000)(0.06) + (10,000)(1 - 0.4) = 32,400 Enter the cash flows and solve for the NPV = $38,839.56.

NEW QUESTION: 2
You are using an m1.small EC2 Instance with one 300 GB EBS volume to host a relational database. You determined that write throughput to the database needs to be increased. Which of the following approaches can help achieve this? Choose 2 answers
A. Use an array of EBS volumes.
B. Put the database behind an Elastic Load Balancer.
C. Place the instance in an Auto Scaling Groups
D. Add an EBS volume and place into RAID 5.
E. Enable Multi-AZ mode.
F. Increase the size of the EC2 Instance.
Answer: B,E

NEW QUESTION: 3

A. Option A
B. Option D
C. Option B
D. Option C
Answer: B