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NEW QUESTION: 1
Projects L and S each have an initial cost of $10,000, followed by a series of positive cash inflows. Project L has total, undiscounted cash inflows of $16,000, while S has total undiscounted inflows of $15,000.
Further, at a discount rate of 10 percent, the two projects have identical NPVs. Which project's NPV will be more sensitive to changes in the discount rate?
A. Both projects are equally sensitive to changes in the discount rate since their NPVs are equal at all costs of capital.
B. Neither project is sensitive to changes in the discount rate, since both have NPV profiles which are horizontal.
C. Project L.
D. Project S.
E. The solution cannot be determined unless the timing of the cash flows is known.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The NPV profile plots a project's NPV against the discount rates. The higher the undiscounted inflows, the steeper the NPV profile, and the steeper the NPV profiles, the more sensitive the project is to discount rate changes.

NEW QUESTION: 2
DRAG DROP
You administer a Microsoft SQL Server database.
You want to import data from a text file to the database.
You need to ensure that the following requirements are met:
- Data import is performed by using a stored procedure.
- Data is loaded as a unit and is minimally logged.
Which data import command and recovery model should you choose? (To answer, drag the appropriate data import command or recovery model to the appropriate location or locations in the answer area. Each data import command or recovery model may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.)

Answer:
Explanation:



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