72 Which of the following is referred to as payback period:A. the number of periods required to recover the initial investmentB. the rate of return on the investmentC. the number of periods required to bring project cost back to the original budget, based

A.This process assigns cost estimates to project activities including risks and contingency plans.

B.The cost baseline will be used to measure variances and future project performance.

C.This process assigns cost estimates for expected future period operating costs.

D.The cost baseline is the expected cost for the project.

A. A list of files that require a backup within 3 days

B. A list of files requiring more than 3 days of archivelogs to apply

C. A list of files that RMAN recommends be backed up only once in every three days, based on low volatility

D. A list of files for which a backup as already been performed in the last three days and which is required to be backed up again based on the high number of transactions performed on them

A.RADIUS

B.SNAT

C.PAT

D.NAT

A. Smaller initial investment

B. Doubles memory requirements

C. Higher simultaneous thread processing

D. Decreases overhead

5 An enterprise has made a material change to an accounting policy in preparing its current financial statements.

Which of the following disclosures are required by IAS 8 Accounting policies, changes in accounting estimates

and errors in these financial statements?

1 The reasons for the change.

2 The amount of the consequent adjustment in the current period and in comparative information for prior periods.

3 An estimate of the effect of the change on future periods, where possible.

A 1 and 2 only

B 1 and 3 only

C 2 and 3 only

D All three items

A. Break mirror array

B. Replace cache battery

C. Replace hot standby

D. Restore from back up

E. Replace defective hard drives

A. 3

B. 4

C. 5

D. 10

PV Co is evaluating an investment proposal to manufacture Product W33, which has performed well in test marketing trials conducted recently by the company’s research and development division. The following information relating to this investment proposal has now been prepared.

Initial investment $2 million

Selling price (current price terms) $20 per unit

Expected selling price inflation 3% per year

Variable operating costs (current price terms) $8 per unit

Fixed operating costs (current price terms) $170,000 per year

Expected operating cost inflation 4% per year

The research and development division has prepared the following demand forecast as a result of its test marketing trials. The forecast reflects expected technological change and its effect on the anticipated life-cycle of Product W33.

It is expected that all units of Product W33 produced will be sold, in line with the company’s policy of keeping no inventory of finished goods. No terminal value or machinery scrap value is expected at the end of four years, when production of Product W33 is planned to end. For investment appraisal purposes, PV Co uses a nominal (money) discount rate of 10% per year and a target return on capital employed of 30% per year. Ignore taxation.

Required:

(a) Identify and explain the key stages in the capital investment decision-making process, and the role of

investment appraisal in this process. (7 marks)

(b) Calculate the following values for the investment proposal:

(i) net present value;

(ii) internal rate of return;

(iii) return on capital employed (accounting rate of return) based on average investment; and

(iv) discounted payback period. (13 marks)

(c) Discuss your findings in each section of (b) above and advise whether the investment proposal is financially acceptable. (5 marks)