Author Question: ABC Company in considering a loss control investment. The project will cost 100,000. It will ... (Read 35 times)

james0929

  • Hero Member
  • *****
  • Posts: 586
ABC Company in considering a loss control investment. The project will cost 100,000. It will generate an after-tax net cash flow of 60,000 one year after investment and an after-tax net cash flow of 60,000 two years after investment.
 
  The present value of 1 received one year from today assuming a 6 percent rate is .9434. The present value of 1 received two years from today assuming a 6 percent interest rate is .8900. Assuming a discount rate of 6 percent, what is the net present value (NPV) of this project?
  A) 10,004
  B) 13,195
  C) 16,604
  D) 20,000

Question 2

A bank stores depositor data electronically. The data include financial account values, social security numbers, and other information.
 
  An outside party was able to gain access to the bank's customer data through unauthorized access to the bank's computer system. The outside party was able to steal money from the accounts and to sell customer data, including social security numbers, to others. This scenario illustrates
  A) terrorism risk.
  B) climate change risk.
  C) speculative financial risk.
  D) cyber-liability risk.



lcapri7

  • Sr. Member
  • ****
  • Posts: 350
Answer to Question 1

Answer: A

Answer to Question 2

Answer: D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

For a complete list of videos, visit our video library