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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. An analyst can ignore inflation since price level expectations are built into the weighted average cost of capital (WACC).
B. Replacement decisions involve mutually exclusive projects.
C. 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.
D. For mutually exclusive projects, the decision rule is to pick the project that has the highest net present value (NPV).
Answer: B
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
Your company has the divisions shown in the following table.

Sub1 contains an Azure web app that runs an ASP.NET application named App1 uses the Microsoft identity platform (v2.0) to handler user authentication. users from east.contoso.com can authenticate to App1.
You need to recommend a solution to allow users from west.contoso.com to authenticate to App1.
What should you recommend for the west.contoso.com Azure AD tenant?
A. pass-through authentication
B. an app registration
C. guest accounts
D. a conditional access policy
Answer: B

NEW QUESTION: 3
In Unicode, one printed character is composed of ____ bytes of data.
A. 0
B. 1
C. 2
D. 3
Answer: B