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Exam Code: C1000-018

Exam Name: IBM QRadar SIEM V7.3.2 Fundamental Analysis

Version: V18.35

Q & A: 315 Questions and Answers

Price: $52.98

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NEW QUESTION: 1
ABC Corp. is considering the following independent projects:
Which of the following would represent the most optimal choice?
A. Since the project A has an NPV of $23,997 and Project B has an NPV of $2,999, both should be chosen.
B. Since the project A has an NPV of $23,997 and Project B has an NPV of $47,565, both should be chosen.
C. Since the project A has an NPV of $23,997 and Project B has an NPV of $2,999, only Project A should be chosen.
Answer: A
Explanation:
Step 1. Find NPV of each project: Note: NPV= (PV of CF)-( Cost)Project A: Given:
PMT=45,000; N = 5; I = 10% -> Find: PV = 173,997 -> NPV = 173,997-150,000 = 23,997Project B: Given:
PMT=162,912; N = 5; I = 13% -> Find: PV = 572,999 -> NPV = 572,999-570,000 = 2,999Since the projects are independent and they are both positive NPVs, the optimal choice would be to choose both.

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