Author Question: ABC Company in considering a loss control investment. The project will cost 100,000. It will ... (Read 29 times)

james0929

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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

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Answer to Question 1

Answer: A

Answer to Question 2

Answer: D



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