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NEW QUESTION: 1
Which of the following statements is correct?
A. In a capital budgeting analysis where part of the funds used to finance the project are raised as debt, failure to include interest expense as a cost in the cash flow statement when determining the project's cash flows will lead to an upward bias in the NPV.
B. The existence of "externalities" reduces the NPV to a level below the value that would exist in the absence of externalities.
C. The preceding statement would be true if "upward" were replaced with "downward."
D. If one of the assets that would be used by a potential project is already owned by the firm, and if that asset could be leased to another firm if the project is not undertaken, then the net rent that could be obtained should be charged as a cost to the project under consideration.
E. The rent referred to in the other statement is a sunk cost, and as such it should be ignored.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The foregone rent is an "opportunity cost" which should be charged to the project under consideration. The cash flows should not take account of interest, because financial costs are dealt with by discounting at the WACC. If interest were deducted to find cash flows, then this cost would be "double counted," and the NPV would be downward biased. Ignoring interest when determining cash flows produces no bias in the NPV whatever. Note also that externalities can be either positive or negative--they tend to be negative if the new project is a substitute for existing products, but positive if the new project is complementary to the firm's other products.
NEW QUESTION: 2
DRAG DROP
Drag each Cisco IOS XR command from the left and drop it on the correct output description on the right.
Answer:
Explanation:
NEW QUESTION: 3
A security analyst is attempting to identify vulnerabilities in a customer's web application without impacting the system or its data. Which of the following BEST describes the vulnerability scanning concept performed?
A. Passive scan
B. Aggressive scan
C. Compliance scan
D. Non-credentialed scan
Answer: A
Explanation:
Passive scanning is a method of vulnerability detection that relies on information gleaned from network data that is captured from a target computer without direct interaction.
Packet sniffing applications can be used for passive scanning to reveal information such as operating system, known protocols running on non-standard ports and active network applications with known bugs. Passive scanning may be conducted by a network administrator scanning for security vulnerabilities or by an intruder as a preliminary to an active attack.
For an intruder, passive scanning's main advantage is that it does not leave a trail that could alert users or administrators to their activities. For an administrator, the main advantage is that it doesn't risk causing undesired behavior on the target computer, such as freezes. Because of these advantages, passive scanning need not be limited to a narrow time frame to minimize risk or disruption, which means that it is likely to return
more information.
Passive scanning does have limitations. It is not as complete in detail as active vulnerability scanning and cannot detect any applications that are not currently sending out traffic; nor can it distinguish false information put out for obfuscation.
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