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NEW QUESTION: 1
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. Prepay a portion of the equipment loan to minimize interest rate risk.
C. Pay off the mortgage and invest remaining funds in a 6-month CD at 2.5%.
D. Pay current payables and invest any excess cash in a money market account earning 1.5%.
Answer: D
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An administrator is troubleshooting an endpoint , whose SIP Registration Status shows
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