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Racklyn Paint Company, a new paint and construction company, has vendor payables of $2 million due periodically over the next 3 months; payroll payable to its crews of $500K each month; a mortgage of $4.4 million with a fixed rate of 6.0%; and an equipment loan of $5 million with a bank at a 30-day LIBOR plus 150 bp payment of $100K due monthly. Racklyn receives their first contract valued at $12 million with half of the contract value due at the time of contract and final payment upon completion. Racklyn expects the job to last 6 months. Which option would be the BEST use of Racklyn Paint Company's cash?
A. Invest $4 million in a CD at 2.5% for 3 months.
B. Pay current payables and invest any excess cash in a money market account earning 1.5%.
C. Prepay a portion of the equipment loan to minimize interest rate risk.
D. Pay off the mortgage and invest remaining funds in a 6-month CD at 2.5%.
Answer: B
NEW QUESTION: 2
An administrator is troubleshooting an endpoint , whose SIP Registration Status shows
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B. VCS>Status>logs>Event Log
C. Endpoint>Diagnostics>Log Files>all.log.
D. VCS>Maintenance>Diagnostics>Incident Reporting >View
E. Endpoint>Log Files>messages.log
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B. Workloads and applications are abstracted from the infrastructure.
C. Software-defined storage and proprietary APls are leveraged
D. Control of the data center becomes entirely automated by hardware and software
E. Customers' IT infrastructure is seen as an end-to-end process.
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