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NEW QUESTION: 1
A firm is performing an analysis of a capacity expansion decision. The simplest element of the analysis is
A. Estimating total long-term demand.
B. Calculating the net present value.
C. Choosing the expansion method.
D. Determining the expansion plans of rival firms.
Answer: B
Explanation:
The formal capital budgeting process entails predicting future cash flows related to the expansion project, discounting them at an appropriate interest rate, and determining whether the net present value (NPV) is positive. This process permits comparison with other uses of the firm's resources. The apparent simplicity of this process is deceptive because it depends upon, among many other things, which expansion method is chosen, developments in technology, and profitability. Profitability in turn depends on such uncertainties as total long-term demand and the expansion plans of rival firms. However, once the assumptions of the NPV model have been determined, the calculation is straightforward.
NEW QUESTION: 2
A utility company is evaluating whether or not it should build a new plant. The process of reviewing the quantitative and qualitative factors are an example of which finance function?
A. Capital budgeting
B. Funding
C. Financial risk management
D. Financial planning
Answer: A
NEW QUESTION: 3
Which of the following are included in Hadoop? (Select three)
A. MapReduce
B. HBase
C. HDFS
D. MPP DB
Answer: A,B,C