The appropriate cost of capital to use in valuing an IT project is the same regardless of the project riskiness.
Answer the following statement true (T) or false (F)
False
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Which of the following core principles from the PRSA Code of Ethics requires practitioners to "be honest and accurate in all communications"?
A. Free flow of information D. Safeguard confidences B. Competition E. Enhancing the profession C. Disclosure of information
Which of the following is an effective practice to follow when introducing a speaker?
A. Look at the audience while talking about the speaker's accomplishments. B. Make the introduction last for more than ten minutes. C. Seat yourself before the speaker reaches the lectern after being introduced. D. Give specific information on the topic the speaker is going to present.
Olga, a minor, signs a contract to buy a computer from Phil, the owner of Quality Computer Store. Olga's right to disaffirm the contract
A. does not change the fact that Phil is bound by the contract. B. does not yet exist because Olga is still a minor. C. gives Phil, an adult, the right to disaffirm the contract. D. is not valid because a computer is a "necessary."
Prudencio Corporation has provided the following information concerning a capital budgeting project: After-tax discount rate 13%Tax rate 30%Expected life of the project 4 Investment required in equipment$160,000 Salvage value of equipment$0 Annual sales$400,000 Annual cash operating expenses$290,000 One-time renovation expense in year 3$40,000?The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. The net present value of the entire project is closest to:See separate Exhibit 13B-1, to determine the appropriate discount factor(s) using the tables provided.
A. $139,420 B. $245,282 C. $85,282 D. $168,000