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NEW QUESTION: 1
The profitability index is a variation on which of the following capital budgeting models?
A. Discounted payback.
B. Economic value-added.
C. Net present value.
D. Internal rate of return.
Choice "c" is correct. The profitability index is a variation on the net present value capital budgeting model.
RULE: The profitability index is the ratio of the present value of net future cash inflows to the present
value of the net initial investment. The profitability index is also referred to as the "excess present value
index" or simply the "present value index." Companies hope that this ratio will be over 1.0, which means
that the present value of the inflows is greater than the present value of the outflows.
Choice "a" is incorrect. The profitability index is a companion computation to net present value, not
internal rate of return, which measures percentage return.
Choice "b" is incorrect. The profitability index is a companion computation to net present value, not
economic value added.
Choice "d" is incorrect. The profitability index is a companion computation to net present value, not the
discounted payback method, which measures years to payback.
NEW QUESTION: 2
A customer needs a server that:
supports their in-memory database
is oriented towards business critical workloads
Which questions should you ask before you make a recommendation? (Choose two.)
A. How will the datacenter provide backup power in the event of failure
B. How important is it for the server to support ASHRAE A3/A4 standards?
C. How much memory will the application require?
D. How many cores are required to optimize the application
E. How will the operating systems and application be deployed?
NEW QUESTION: 3
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