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  • Exam Number/Code : IIA-CIA-Part3
  • Exam Name : Business Knowledge for Internal Auditing
  • Questions and Answers : 260 Q&As
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NEW QUESTION: 1
Project A has an IRR of 10% and project B has an IRR of 12%. The crossover rate for these projects is
7.4%. You use the NPV rule for making project selections. If both the projects have a cost of capital of
6.9%, and are mutually exclusive with normal cash flows, you should:
A. insufficient information.
B. select project A.
C. select project B.
D. select neither A nor B.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The crossover rate is the discount rate at which the graphs of NPV versus discount rate for the two projects cross. Since the projects have normal cash flows, they will have a single crossover rate. Further, the project with the higher IRR has a "flatter" NPV profile. Therefore, if the cost of capital is smaller than the crossover rate, the project with the flatter profile will have a smaller NPV. Therefore, project A has a higher NPV at the cost of capital of 6.9% and should be selected over project B.

NEW QUESTION: 2
Click on the exhibit.

Router R2 advertises an OSPF summary route 10.10.10.0/24 into Area 1. Router R3 receives labels for
individual FECs 10.10.10.2/32 and 10.10.10.4/32. These two FECs are installed in router R3's LIB but not
in the LFIB. What needs to be done on router R3 to install these labels into its LFIB?
A. Disable route summarization on router R3.
B. Create an import policy to accept 10.10.10.2/32 and 10.10.10.4/32.
C. Enable LDP aggregate prefix match.
D. Disable LDP exact match on 10.10.10.2/32 and 10.10.10.4/32.
Answer: C

NEW QUESTION: 3
An administrator is performing the post-installation configuration of Workspace Portal. While
running the setup wizard, the administrator receives an error message. The error message
appears during configuration of the Directory settings and indicates that the user account cannot
be found.
The administrator has confirmed the following:
-The user account exists in Active Directory.
-The user account has all of the required attributes.
What is causing the error?
A. The user account has not been entered into the Global Catalog.
B. The user account is located above the Base DN.
C. The user account is located below the Base DN.
D. The user account name is too long.
Answer: B

 

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