Author Question: ABC Company in considering a loss control investment. The project will cost 100,000. It will ... (Read 47 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?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

For a complete list of videos, visit our video library