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  • Exam Number/Code : IIA-CIA-Part2
  • Exam Name : Practice of Internal Auditing
  • Questions and Answers : 260 Q&As
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NEW QUESTION: 1

A. Option C
B. Option B
C. Option A
D. Option D
Answer: D

NEW QUESTION: 2

A. Option C
B. Option B
C. Option A
D. Option D
Answer: D

NEW QUESTION: 3
Refer in the exhibit.
interface FastEthernet0/0
ip helper-address 192.168.145.5
A packet capture indicates that the router is not forwarding the DHCP packets that it receives on interface FastEthernet0/0.
Which command needs to be entered in global configuration mode to resolve this issue?
A. ip helper-address
B. ip DHCP relay
C. ip forward-protocol
D. service DHCP
Answer: A

NEW QUESTION: 4
Javier Corporation is considering a project with the following cash flows:
Time Cash Flow
0-$13,000
112,000
28,000
37,000
4-1,500
The firm's cost of capital is 11 percent. What is the project's modified internal rate of return (MIRR)?
A. 24.90%
B. 16.82%
C. 23.78%
D. 25.93%
E. 21.68%
Answer: A
Explanation:
Explanation/Reference:
Explanation:
First, find PV of all cash outflows:
PV of CF(0) is -$13,000. PV of CF(4) is -1,500 discounted at 11% for 4 periods or -$988.10. Thus, the PV of all cash outflows is -$13,988.10.
Second, find the FV at t = 4 of all cash inflows:
The sum of these cash inflows is the project's terminal value. FV of CF(1) at t = 4 is found by entering N
3, I = 11, PV = -12,000, and PMT = 0. Then solve for FV = $16,411.57. Similarly, the FVs at t = 4 of CF(2) and CF(3) are found to be $9,856.80 and $7,770.00, respectively. Thus, the projects TV = $16,411.57 +
$9,856.80 + $7,770.00 = $34,038.37.
To find the MIRR, enter N = 4, PV = -13,988.10, PMT = 0, and FV = 34,038.37, which yields I/YR = MIRR
= 24.90%.

 

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