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NEW QUESTION: 1
Rapacity Consultants has just finished a project feasibility study for a cash-rich firm at a cost of $3 million.
The consultants have concluded after much analysis that the project's cash flows have a net present value of $1.3 million and a payback period of 5.3 years. The firm should:
A. reject the project since it has a long payback period.
B. reject the project since it has a negative NPV.
C. accept the project since it has a positive NPV.
D. none of these answers.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The $3 million spent on consultants represent sunk costs and must be ignored while looking toward the future. In that direction, the project has a positive NPV and should be accepted.

NEW QUESTION: 2
A U.S. Based manufacturing company has decided to expand overseas to South Korea. Which of the
following is an example of environmental scanning ?
A. Developing a compensation structure in line with the local market
B. Changing the company's product mix to take advantage of the new labor market
C. Analyzing the number of skilled workers in the area
D. Building internal training programs for the new international employees
Answer: C

NEW QUESTION: 3
Note: This question is part of a series of questions that present the same scenario.
Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it As a result, these questions will not appear in the review screen.
A customer needs to start a new agreement by making only an annual Monetary Commitment of $25,000 US dollars for Microsoft Azure services.
Solution: The customer uses an Enterprise Agreement (EA) to purchase the services.
Does this meet the goal?
A. No
B. Yes
Answer: A